NEW YORK, NY, UNITED STATES, December 17, 2024 /EINPresswire.com/ — National investment loss and securities attorneys KlaymanToskes continues investigating barred financial advisor Richard Wesselt after his recommendations of variable annuities and whole life insurance policies caused two investors up to $500,000 in damages. The law firm urges all current and former customers of Richard Wesselt, Fortune Financial Services, and The O.N. Equity Sales Company (ONESCO) who suffered investment losses to contact the firm immediately at 888-997-9956.
KlaymanToskes reports the firm has filed a FINRA arbitration claim (Case no. 24-02569) against Fortune Financial Services and The O.N. Equity Sales Company (“ONESCO”) on the behalf of several investors who are seeking to recover up to $500,000 in damages, in connection with being recommended to invest in unsuitable variable annuity and whole life insurance policies by their financial advisor, Richard Wesselt (CRD# 2195569).
According to the claim filed by KlaymanToskes, financial advisor Richard Wesselt, who has been permanently barred by the Financial Industry Regulatory Authority (“FINRA”), implemented a deceptive investment strategy known as the “Private Family Bank” or “Infinite Wealth” model. This scheme involved persuading customers to liquidate their retirement savings and invest in variable annuities and whole life insurance policies that were unsuitable for their financial needs and risk tolerance.
Wesselt allegedly misrepresented the benefits of the strategy to the investors, falsely claiming that the annuities provided guaranteed returns while encouraging the use of high-cost loans from whole life insurance policies. These recommendations resulted in significant financial losses, including surrender charges, tax penalties, and the depletion of retirement accounts, while Wesselt profited through excessive commissions.
According to FINRA’s letter of Acceptance, Waiver, and Consent (AWC) issued on November 9, 2020, Wesselt was permanently barred from associating with any FINRA member in all capacities after findings revealed a pattern of misconduct involving at least 76 customers during his employment at ONESCO and Fortune Financial Services. FINRA’s findings disclosed that his misconduct included the liquidation of 401(k) accounts to fund unsuitable investments and the use of misleading financial projections to obscure the risks and costs associated with the strategy.
Additionally, FINRA issued a separate AWC against ONESCO for failing to reasonably supervise Wesselt’s recommendations, which resulted in the firm being fined $275,000 and ordered to pay $1,000,000 in restitution to affected customers. The AWC noted that ONESCO’s supervisory deficiencies allowed Wesselt’s scheme to persist, as the firm’s principals were reportedly aware of the variable annuity sales but failed to investigate the full scope of his activities, including red flags raised by the transactions.
Former customers of Richard Wesselt and/or any other financial advisor who suffered investment losses are encouraged to contact attorney Steven D. Toskes, Esq. at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Steven D. Toskes, Esq.
KlaymanToskes, P.A.
+1 888-997-9956
investigations@klaymantoskes.com