Todd R. Anderson, of Tucson, Arizona, a stockbroker registered with Benchmark Investments LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in all capacities because Anderson refused to provide documents and information during the regulator’s investigation into his potential forgery of a customer’s signature on annuity documents. Letter of Acceptance, Waiver, and Consent No. 2023079333101 (December 20, 2023).
In a Form U5, Benchmark Investments Inc. reported that Anderson’s stockbroker registration was terminated following a FINRA suspension. Subsequently, Benchmark initiated an internal review after a customer disputed a signature on a fixed annuity application.
FINRA’s investigation stemmed from its review of Benchmark’s termination notice. On September 19, 2023, FINRA asked Anderson for documents and information. On November 30, 2023, Anderson stated to FINRA that he would not comply with its request. Therefore, he violated FINRA Rules 2010 and 8210.
This is not the first time that Anderson has been the subject of a regulatory action concerning Anderson’s conduct in the securities industry. FINRA Public Disclosure shows that Anderson was fined $5,000 and suspended for 45 days because Anderson made unsuitable recommendations in mutual funds. Letter of Acceptance, Waiver, and Consent No. 2019063749201 (April 20, 2023).
According to the AWC, between April of 2014 to September of 2019, Anderson arranged the purchase of more than $1,000,000.00 in mutual funds across 31 fund families for a senior customer. Anderson failed to consider the potential for fee discounts through fewer fund family investments. This oversight led to the customer incurring $20,867.00 in unnecessary sales charges.
FINRA stated that Anderson’s recommendations did not take into account that the customer could have benefited from higher breakpoint levels and rights of accumulation, resulting in a lower cost to invest. By not considering these available options, Anderson violated FINRA Rules 2010 and 2111.
On February 17, 2022, a different customer initiated investment related FINRA securities arbitration claim involving Anderson’s conduct was settled for $31,500.00 in damages based upon allegations that Anderson made unsuitable investment recommendations in direct investments and real estate securities when Anderson was associated with Cetera Advisors LLC. FINRA Arbitration No. 20-02429.
Anderson was associated with Cetera Advisors LLC in Tucson, Arizona, from March 21, 2014, to October 4, 2019. He was also associated with Benchmark Investments LLC in Tucson, Arizona, from September 17, 2019, to May 15, 2023.
