• October 25, 2022
• Ameriprise Financial Services

Brent Makarczyk (CRD#: 4278893) is a registered Broker and Investment Advisor at Ameriprise Financial Services, LLC in Nanticoke, PA.

Broker’s Background

He entered the securities industry in 2001 and previously worked for IDS Life Insurance Company; and Pruco Securities Corporation.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2022, a customer dispute was opened against Brent Makarczyk. The allegation states, “Claimants allege that in around 2010, they were sold two unsuitable variable life insurance policies and a variable annuity.” The customer dispute is pending, and damages of $414,500 are requested.

In addition, Brent Makarczyk has been the subject of two customer complaints, including one that remains pending, including the following:

• February 2022 — “Claimants allege that they were sold unsuitable insurance policies in 2013 and 2016, as well as variable annuities and an illiquid REIT (Watermark Lodging Trust).” The customer dispute is pending, and damages of $416,284 are requested.
• October 2008 — “CLIENT ALLEGED THE ADD ON PURCHASE INTO HIS VARIABLE ANNUITY WAS NOT SUITABLE OR PROPERLY DISCLOSED. PURCHASE MADE IN OCTOBER 2006.” The customer dispute was denied.

For a copy of Brent Makarczyk’s FINRA BrokerCheck, click here.

A variable annuity is a type of annuity contract, which offers investors growth potential based on the performance of sub-accounts. When investors contribute money to a variable annuity, the sub-accounts are invested in mutual funds that meet the customers’ risk profile. The more risk taken within the sub-accounts, the greater the potential for gains and losses. The performance of a variable annuity is not guaranteed, and Financial Advisors often fail to explain the risks of variable annuities are similar to those experienced in the stock market.

The most common type of variable annuity is structured to provide a deferred income benefit to the investor at some date certain in the future. Investors will often pay fees as per the annuity contract to add an income feature. This is known as an “income rider.” For example, if an investor plans to retire at age 65, he or she may elect to begin drawing income from the variable annuity at that time. The income payments received will ultimately reduce the principal value of the annuity.

Over time, the principal value of a variable annuity will appreciate or decline depending on the performance of the sub-accounts. When the investor begins to withdraw income, the formula for calculating the amount of income is correlated to the principal value of the annuity.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.