Lincoln Financial— Failure to Have Adequate Supervisory Systems

investment fraud lawyersLincoln Financial Allegedly Failed to Maintain and Supply Adequate Supervisory Systems and Procedures Designed to Achieve Compliance with Their Suitability in Recommending the Hedge Fund

Lincoln Financial allegedly failed to maintain and supply adequate supervisory systems and procedures designed to achieve compliance with their suitability obligations in recommending to the 25 customers that they invest in a hedge fund known as the Hedge Fund, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC) currently under review by currently under review by attorneys Alan Rosca and Joe Peiffer.

The Peiffer Rosca Wolf securities rights lawyers are currently investigating Lincoln Financial for their alleged failure to maintain and supply adequate supervisory systems and procedures. The AWC goes on to allege that 25 of the Lincoln’s customers invested a total of approximately $11.7 million in the Hedge Fund.

Lincoln Financial Allegedly Failed to Adequately Supervise Customer Specific Suitability Reviews for Investments in the Hedge Fund, Including Failing to Review for Overconcentration in Alternative Investments through PPVA Sub-account Allocations

Lincoln Financial allegedly failed to adequately supervise customer specific suitability reviews for investments in the Hedge Fund, including failing to review for overconcentration in alternative investments through PPVA sub-account allocations, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC) currently under review by currently under review by attorneys Alan Rosca and Joe Peiffer.

The AWC goes one to report that between approximately October 2008 and April 2009, registered reps at two Lincoln branches allegedly recommended that customers invest in the Hedge Fund as a sub-account to a private placement variable annuity.

Lincoln Financial, based on the aforementioned behavior, allegedly violated FINRA Rules, and agrees to a censure and $150,000 fine from FINRA, according to the AWC. It is also important to note that, according to the AWC, Lincoln Financial accepted and consented, without admitting or denying the FINRA findings.

Investor Rights Lawyers Investigating

The Peiffer Rosca Wolf investor rights lawyers often represent investors who lose money as a result of alleged failure to maintain and supply adequate supervisory systems and procedures investment fraud and schemes. They are currently investigating Lincoln Financial for allegedly failing to maintain and supply adequate supervisory systems. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of Lincoln Financial for allegedly failing to maintain and supply adequate supervisory systems may contact the securities rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1225 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.