The law firm of Oakes & Fosher is presently investigating the possible misconduct of securities broker Marc Korsch–a securities broker we have had dealings with in the past.

Marc Korsch is a Florida based securities broker. He has worked in the securities industry for ten years. During his career, he has been registered with five different securities firms.

His Registrations

  • Gradient Securities (2009-2010)
  • Variable Investment Advisors (2010)
  • Capital Financial Services (2010-2011)
  • Trustmont Financial Group (2011-2014)
  • Centaurus Financial (2014-Present)

The Allegations

Oakes & Fosher filed an arbitration against Trustmont Financial Group in February 2017 for the alleged actions of Marc Korsch. Our firm, on behalf of his former customer, alleged that Korsch switched him from two variable annuities into two separate Equity Indexed Annuities.

We alleged that Marc Korsch violated Florida’s Securities and Investor Protection Act, breached his fiduciary duty, engaged in common law fraud, recommended unsuitable products, handled the customer’s account negligently, made negligent misrepresentations and omissions, and breached contract.

Marc Korsch allegedly recommended to this customer that he sell both of his variable annuities and purchase two equity indexed annuities without a reasonable basis to believe it would be suitable for him. Since the sale of a new annuity generates a very large commission for the broker, often times brokers recommend switching into a new annuity when there is little to no benefit to the client.

Mark Korsch allegedly switched his client’s annuities and received the very high commissions that come with it, while his customer was left with a high cost and highly illiquid product.

This case went to arbitration where our customer was awarded approximately $1.1 million in damages.

What Are Equity Indexed Annuities?

A variable annuity is typically a vehicle for retirement investments that allows the annuity holder to invest in different stock or bond mutual funds. The annuity then pays the individual income during retirement. This income is determined by the performance of the securities that were chosen for the variable annuity.

A variable annuity is the opposite of what is known as a fixed annuity. This retirement plan does not include market investments, but rather just has the individual pay their premium before retirement. The individual then receives that income during retirement. The income is determined by what they paid into it–with interest.

A hybrid of these two annuities known as an equity indexed annuity has been increasing in popularity over the last ten years. EIAs are technically classified as a fixed annuity and guarantee a very low flat rate on an investment. The product also offers a complex formula that links the potential interest to specific market indexes. These annuities pay the broker substantial front end commissions, higher than variable annuities and higher than traditional fixed annuities. These products also come loaded with high annual expenses and substantial surrender fees. That means that if a customer seeks to redeem the annuity prior to the surrender period, the investor will pay a penalty of up to 20%. EIAs seem alluring because they offer opportunity for growth, without the significant risk; however, the growth formulas are complex and the potential is very limited.

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 Marc Korsch, or in equity indexed annuities, 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.