Judith Adele Johnston of Frisco Texas a stockbroker formerly employed by NYLife Securities LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Johnston failed to cooperate with FINRA personnel in the course of an investigation into the complaints lodged against her from customers who purchased variable annuities. Letter of Acceptance Waiver and Consent No. 2018056891001 (Mar. 18, 2019).
According to the AWC, an investigation into Johnston’s sales practices commenced after FINRA discovered multiple complaints from customers who purchased variable annuities through Johnston while she was registered with NYLife Securities LLC. The AWC stated that on November 6, 2018, Johnston was sent a letter from FINRA which requested that she make an appearance before FINRA personnel to provide recorded testimony concerning the customer’s allegations.
Evidently, Johnston testified on January 24, 2019; however, it was inconclusive. FINRA was left needing additional information from Johnston in the investigation. Accordingly, FINRA made another request for Johnston’s recorded testimony. However, the AWC stated that on February 11, 2019, Johnston’s counsel revealed to FINRA that Johnston would at no point be providing additional testimony in FINRA’s investigation into her activities. FINRA found Johnston’s failure to cooperate in this respect to be violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Johnston is referenced in eight customer initiated investment related dispute containing accusations of her misconduct while she was employed by NYLife Securities LLC. Particularly, on May 31, 2016, a customer initiated investment related complaint concerning Johnston’s activities was resolved for $12,950.93 in damages founded on allegations that misrepresentations had been made to the customer about variable annuity terms and conditions.
On April 17, 2017, another customer initiated investment related complaint concerning Johnston’s conduct was resolved for $95,982.03 in damages based upon accusations that the customers were provided false information about the mortality and expense fees on four annuities purchased by them, and they were led to believe that there were no additional charges for the annuity except for a rider purchased by the customers. Thereafter, on May 24, 2017, a customer initiated investment related complaint concerning Johnston’s activities was settled for $17,228.65 in damages supported by allegations that the customer was provided misleading information pertaining to a variable annuity’s terms and benefits, inducing the customer’s annuity purchase.
Additionally, on September 28, 2017, a customer initiated investment related complaint regarding Johnston’s conduct was resolved for $10,601.62 in damages founded on accusations against Johnston of misrepresentations and misstatements with regard to the expenses and fees of a variable annuity purchased by the customer. On May 23, 2018, another customer initiated investment related complaint involving Johnston’s activities was settled for $445,161.57 in damages based upon allegations that Johnston misled customers into believing that an unauthorized party was licensed to effect annuity sales; and Johnston’s deceptive actions caused the customers to follow the unauthorized party’s advice of applying $1,400,000.00 towards purchases of variable annuities that had been misrepresented with regard to their expenses, fees, riders and performance.
Thereafter, on June 26, 2017, a customer filed an investment related complaint concerning Johnston’s activities in which the customer requested damages estimated to exceed $5,000.00 supported by accusations that misleading information had been provided to customers who were sold variable universal life insurance policies and variable annuities; and the person who effected the sale was not a licensed insurance agent. On November 27, 2017, another customer initiated investment related complaint regarding Johnston’s conduct was resolved for $16,301.00 in damages founded on allegations that variable annuities sold to the customer were misrepresented.
Then, on August 22, 2018, a customer filed an investment related complaint involving Johnston’s activities where the customer sought more than $5,000.00 in damages based upon accusations that Johnston’s spouse – an unlicensed insurance agent – solicited the customer’s insurance purchases with Johnston, and that information about the risks and terms of variable universal life insurance products was withheld from the customer during the time that the customer moved forward with the insurance policy purchase.
Johnston’s registration with NYLife Securities LLC has been terminated as of October 13, 2016.
