Our firm is investigating the abuses by brokers and insurance agents in the sale of Indexed Annuities.  Many states’ insurance commissioners have issued investor alerts concerning these products (also called Equity Indexed Annuities or Fixed Indexed Annuities).  For example, the Florida Department of Financial Services said that:


“Equity indexed annuities are complicated products that are difficult to understand. Uninformed consumers are often targeted by unscrupulous agents employing deceptive sales practices, and equity indexed annuities have become a prime vehicle for this kind of fraud. Deceptive sales practices can occur in many different ways, and nearly anyone can become a victim.”


FINRA has also issued a Notice To Members 05-50 addressing the responsibility of broker-dealers in supervising the sales of these annuities, which are not registered under Federal securities laws.  FINRA is concerned about the manner in which brokers are marketing and selling unregistered indexed annuities, and the absence of adequate supervision of these sales practices. FINRA has seen sales material for unregistered indexed annuities that do not fully describe the features and risks of the product. For example, FINRA has seen the following claims:


  • “What if the market goes down and you would lose nothing? The market goes up-you gain!”
  • “A Win/Win Investment Vehicle!”
  • “How Your Retirement Funds Can Have: Security of Principal, Higher Than CD Rates of Interest, Opportunity for Growth (No Losses)”
  • “Pick up where Social Security leaves off with NEW tax-deferred annuities…featuring… 2 indexed accounts linked to a popular stock market index.”
  • “If you’re looking for upside potential and no market downside look no further than [name of EIA]. This fixed annuity… enables you to make the most of S&P 500 Index gains…”
  • “Growth Potential without Market Risk.”


Have you purchased this type of annuity?  Your money may be subject to substantial penalties if you should ever need access to it.  You may be entitled to your money back without penalty if you were a victim of annuity fraud.  Call the Securities Law Firm of Menzer & Hill, P.A. for a free consultation.