- May 24, 2022
- NY Life Securities
Marlyn McClain (CRD: 325415) is a registered Broker at NYLife Securities in Elkhorn, NE.
She entered the securities industry in 1974 and previously worked for New York Life Variable Contracts Corp.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2021, a customer dispute was filed against Marlyn McClain. The allegation states, “Plaintiff alleges that beginning in the mid 1990’s he was misled into purchasing a series of whole life insurance policies and selling securities to pay the premiums and maintain the policies.” The customer dispute is pending.
In addition, Marlyn McClain has been the subject of three customer complaints, including the following:
- April 2018 — “Customer alleges that the sale of a Survivorship VUL in January 2013 was inappropriate given his age and net worth.” The customer dispute was settled for $70,000.00.
- September 2011 — “CUSTOMER ALLEGES THAT RETIREMENT PRODUCTS PURCHASED IN MAY 2007 INCLUDING A VARIABLE UNIVERSAL LIFE INSURANCE POLICY WERE MISREPRESENTED BASED ON THE CUSTOMER’S INVESTMENT OBJECTIVES AND FINANCIAL SITUATION.” The customer dispute was settled for $71,207.18.
- June 1995 — “PLAINTIFFS ALLEGE THAT I FAILED TO DISCLOSE ALL MATERIAL FACTS IN RECOMMENDING FINANCIAL/INSURANCE PRODUCTS. IN ADDITION, THEY CLAIM THAT “I ADVISED THEM TO PURCHASE AN EXCESSIVE AMOUNT OF LIFE INSURANCE FOR A RETIREMENT PLANNING PORTFOLIO.” NO SECURITIES PRODUCTS INVOLVED. PLAINTIFFS SEEK UNSPECIFIED DAMAGES, INTEREST AND COSTS.” The customer dispute was settled for $120,000.
For a copy of Marlyn McClain’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.
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