John Whalen Facing Variable Annuity Disputes

John Whalen (CRD #: 1900188), a broker registered with Commonwealth Financial Network, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on October 8, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations 

On September 4, 2024, an investor alleged that John Whalen misrepresented two variable annuity policies sold in 2005. The investor alleged that he did not properly disclose policy terms and failed to explain the Guaranteed Minimum Income Benefit. 

On March 1, 2022, an investor alleged that John Whalen recommended unsuitable alternative investments. The investor sought over $1 million and the dispute settled for $55,000. 

Variable Annuities 

Variable annuities are complex investments. These policies can decline in value depending on the performance of the underlying securities. Surrender charges, tax penalties, and other fees can make these policies unsuitable.

Misrepresentation 

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

What is an Unsuitable Investment? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. 

Rule 2111 also requires brokers to consider the following investor characteristics: 

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

Background Information 

John Whalen has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination
• Series 6 Investment Company Products/Variable Contracts Representative Examination 
• Series 24 General Securities Representative Examination 
• Series 26 Investment Company Products/Variable Contracts Principal Examination 

He is a registered broker in 18 states and D.C. He is a registered investment adviser in Hawaii. 

John Whalen has registered with four firms: 

• Commonwealth Financial Network (CRD #: 8032) 
• VSR Advisory Services (CRD #: 14503) 
• AXA Advisors (CRD #: 6627) 
• The Equitable Life Assurance Society of the United States (CRD #: 4039)  

Kurta Law Can Help 

If you worked with John Whalen and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.