- May 14, 2023
- Benchmark Investments LLC
Todd Ray Anderson is a dually registered Broker and Investment Adviser at Benchmark Investments, LLC in Tucson, AZ.
He entered the securities industry in 1988 and previously worked for Benchmark Advisory Services, LLC; Cetera Advisors, LLC; Geneos Wealth Management, Inc.; Hornor, Townsend & Kent, Inc.; NYLife Securities, Inc.; MetLife Securities, Inc.; and Metropolitan Life Insurance Company.
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 2023, FINRA sanctioned Todd Ray Anderson with a civil and administrative penalty/fine of $5,000, and ordered him to pay restitution of $20,867. He was also suspended from all capacities for 45 days beginning May 15, 2023 and ending June 28, 2023. The FINRA sanction states, “Without admitting or denying the findings, Anderson consented to the sanctions and to the entry of findings that he recommended that a senior customer purchase over $1 million in mutual funds across 31 fund families, without considering the availability of fee discounts that would have been available to the customer by investing in fewer fund families. The findings stated that in making recommendations to the customer, Anderson failed to consider that the customer could have received a fee discount by reaching higher breakpoint levels, including through rights of accumulation, had the customer purchased funds in fewer fund families. Anderson’s recommendation that the customer invest in multiple fund families, without regard for available rights of accumulation and breakpoint discounts, caused the customer to incur $20,867 in unnecessary sales charges.”
For a copy of the FINRA sanction, click here.
In addition, Todd Ray Anderson has been the subject of 13 other disclosures, including the following:
- May 2022 — A tax judgment/lien in the amount of $24,251.67 was levied against Todd Ray Anderson.
- November 2021 — A tax judgment/lien in the amount of $29,266.67 was levied against Todd Ray Anderson.
- September 2021 — A tax judgment/lien in the amount of $62,449.48 was levied against Todd Ray Anderson.
- October 2020 — A tax judgment/lien in the amount of $51,979.24 was levied against Todd Ray Anderson.
- July 2020 — “Customer alleges unsuitable investment recommendations made between 2010-2013 and other causes of action.” The customer dispute was settled for $31,500.
- September 2019 — “The representative was terminated based on: 1) failure to follow the Firm’s written instruction that he obtain pre-approval for all mutual fund purchases; 2) failure to follow the Firm’s procedure requiring pre-approval of outside business activities; and 3) a customer allegation that the representative executed an unauthorized trade.” Todd Ray Anderson was discharged by Cetera Advisors, LLC.
- January 2018 — A tax judgment/lien in the amount of $110,232.26 was levied against Todd Ray Anderson.
- June 2017 — A tax judgment in the amount of $84,613.64 was levied against Todd Ray Anderson.
- February 2017 — A tax judgment/lien in the amount of $777,273.98 was levied against Todd Ray Anderson.
- February 2017 — A tax judgment /lien in the amount of $365,148.89 was levied against Todd Ray Anderson.
- June 2010 — A tax judgment/lien in the amount of $269,296 was levied against Todd Ray Anderson.
- May 2009 — “CLIENTS ALLEGE THAT REPRESENTATIVE MISREPRESENTED THE FEATURES OF A VARIABLE ANNUITY RIDERS.” The customer dispute was settled for $408,704.
- May 2000 — “THE CUSTOMER STATES WITH REGARD TO A VARIABLE ANNUITY PURCHASED IN SEPTEMBER 1997, THAT “THERE WAS NO UNDERSTANDING SHE WOULD BE CHARGED (SURRENDER CHARGES) FOR REQUESTING ANY MONIES FROM THE ACCOUNT.” THE CUSTOMER ALSO ALLEGES UPON BEING INSTRUCTED TO WRITE A $900.00 CHECK FROM THEIR MONEY MARKET MUTUAL FUND ACCOUNT, MR. ANDERSON “NEGLECTED TO LET US KNOW THERE WOULD BE FIDUCIARY FEES, TAX FEES, ETC.” THE CHECK SUBSEQUENTLY BOUNCED. THE CUSTOMERS REQUEST COMPENSATION FOR TAXES, AMOUNT OF LOST INVESTMENTS, ONE YEAR’S PREMIUMS, AND SURRENDER CHARGES.” The customer dispute was denied.
For a copy of Todd Ray Anderson’s FINRA BrokerCheck, click here.
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.
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