The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker John Eads. According to his publicly available FINRA BrokerCheck report, John Eads has been the subject of multiple customer disputes.

John Eads was a Florida based securities broker. He worked in the securities industry for twenty years. During his career, he was registered with three different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Woodbury Financial Services (1997-2009)
  • AXA Advisors (2009-2017)
  • Lion Street Financial (2017-2018)

The Allegations

  • In September 2013, customers alleged that John Eads made material misrepresentations during the sale of variable annuities and life insurance purchased in 2009. The customers further alleged that John Eads recommended investments that were unsuitable given their financial needs. This case was settled for $100,000.
  • In June 2016, a customer alleged that Eads made unsuitable recommendations regarding an annuity. This case was settled for $85,821.
  • In February 2018, John Eads was discharged from his position at Lion Street Financial. This was due to allegations that he submitted client documents without their legal signature.

What Are Annuities?

Annuities are investment vehicles designed for an individual’s retirement. Essentially, the investor pays scheduled premiums up until their retirement date, at which point they begin receiving scheduled distributions to act as their income during retirement. There are different types of annuities. Fixed annuities are very straight forward. The amount that the investor receives during retirement is dependent on how much they paid into it–plus interest. A variable annuity on the other hand operates a little differently. The premiums an investor pays during the annuity’s “surrender” period are invested into the equities market. The amount that an individual receives during their retirement is dependent on how well the money had been invested.

The truth about annuities is that they are only suitable for a certain type of investor. This is because they are very illiquid products that make it almost impossible for investors to receive any money from it during its “surrender” period. This is because there are incredibly high penalties that the annuity holder incurs should they withdraw funds, or surrender the annuity entirely, during the annuity’s “surrender” period. Annuities should never be recommended to investors that believe they might need to liquidate assets should the need arise.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with John Eads, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.