Timothy James Pandekakes of Yonkers New York a stockbroker formerly registered with Cadaret Grant Co. has been suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he gave unsuitable investment advice to customers of Cadaret Grant. Letter of Acceptance Waiver and Consent No. 2019061498801 (Dec. 9, 2020).
According to the AWC, between January of 2016 and April of 2018, two customers who were approaching retirement had been advised by Pandekakes to exchange their four existing annuities with other products including annuities when Pandekakes lacked an adequate basis to conclude that those replacements were appropriate.
In recommending annuity exchanges, FINRA rules called for Pandekakes to consider the impact of a surrender charge, loss of benefits, and possible increase in charges that include mortality and expense fees, rider fees, and investment advisory fees.
The AWC stated that customers were advised by Pandekakes in each instance to exchange an annuity when doing so resulted in surrender penalties and a loss of benefits. Pandekakes also advised customers to move out of products which contained valuable death benefits and living benefits. Those annuities contained long-term income riders containing guaranteed growth rates.
The regulator pointed out that more than $44,406.17 in surrender fees were imposed by executing those transactions. The new annuities which customers purchased at Pandekakes’s direction had exposed them to a new surrender period.
Pandekakes’s actions were violative of FINRA Rules 2010, 2330 and 2111.
Pandekakes was discharged by Cadaret Grant on June 7, 2019 based upon accusations of his investment practices failing to be consistent with the securities broker dealer’s expectations.