Peter Orlando is a stockbroker formerly associated with SCF Securities Inc. who is the subject of a Complaint brought by Financial Industry Regulatory Authority (FINRA) containing accusations that Orlando made unsuitable investment recommendations to a customer and procured signed but otherwise blank documents to effect transactions. Department of Enforcement v. Peter Orlando Disciplinary Proceeding No. 2014043863001 (Feb. 7 2018).
According to the Complaint, in October of 2011, a recommendation was made by Orlando to a seventy-eight year old customer, DW, regarding an investment in MetLife Preference Premier – a variable annuity that was supposed to provide DW retirement income through the annuity’s guaranteed minimum income benefit rider.
Apparently, Orlando took control of DW’s finances following DW’s husband’s death in March of 2014, wherein DW was tasked with advising DW on the use of $350,000.00 in funds that DW obtained through the sale of DW’s home. Orlando reportedly informed DW that as a requirement of providing her financial advice, DW had to terminate her accounts with MetLife, which included the MetLife variable annuity previously purchased as a result of Orlando’s recommendations.
DW apparently surrendered the MetLife annuity with Orlando’s assistance on August 11, 2014 citing a change in DW’s circumstances. Consequently, the Compliant stated that DW incurred a withdrawal charge, a sales charge, and a guaranteed minimum income benefit charge. DW was also reportedly no longer entitled to automatic monthly payments of $626.91 and could not take advantage of a future income stream through the MetLife annuity’s guaranteed minimum income benefit rider.
The Complaint alleged that when Orlando recommended that DW surrender her annuity, he failed to consider the penalties and charges that DW would be required to pay, and failed to consider DW’s dependence on the MetLife annuity to generate income for her. Consequently, Orlando’s conduct was alleged by Department of Enforcement to be violative of FINRA Rules 2010 and 2111.
The Complaint additionally stated that Orlando subsequently helped the customer revoke durable power of attorneys that had been assigned to DW’s sons, KW and WW.
Further, at Orlando’s direction, DW’s jointly owned account with WW had been terminated, and DW’s $372,000.00 in funds had been relocated to a trust account for the benefit of Orlando. Apparently, a new account set up at Orlando’s direction listed him as the beneficiary of funds owned by DW at DW’s death. Moreover, Orlando allegedly made recommendations to DW that she hire an attorney for the purposes of making Orlando DW’s conservator.
The Complaint stated that Orlando attempted to be DW’s durable power of attorney after learning that his firm prevented him from acting as DW’s conservator. Orlando reportedly recommended that a second lawyer be retained by DW to help DW become Orlando’s durable power of attorney and aid in the revision of DW’s will. DW apparently appointed Orlando to be DW’s durable power of attorney for health care, the executor of DW’s will, and the primary beneficiary of DW’s estate.
The Complaint also reported that by September of 2014, Orlando was provided the authority to make insurance, investment, and banking decisions on DW’s behalf. However, the Complaint stated that Orlando was prohibited by the firm’s procedures and policies from being DW’s durable power of attorney, being an executor of DW’s will, or serving in a fiduciary role for DW. FINRA’s Department of Enforcement alleged that Orlando’s conduct in that regard was violative of FINRA Rules 2010.
FINRA Public Disclosure confirms that on April 29, 2013, a customer filed an investment related complaint, wherein the customer requested $7,000.00 in damages based upon allegations that Orlando made misrepresentations to the customer regarding a variable annuity.
Orlando’s registration with MetLife Securities, Inc. was terminated on December 17, 2014. He was later employed with SCF Securities, Inc. until February 8, 2018.
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