Investor Alleges Donald Herndon Allowed VUL to Lapse

Donald Herndon (CRD #: 2240766), a broker registered with Ameriprise Financial Services, is the subject of a pending dispute, according to his BrokerCheck record, accessed on June 30, 2022. Keep reading if you have questions about Donald Herndon’s conduct as a broker.

Investor Disputes

On June 2, 2022, investors filed a dispute alleging that Donald Herndon allowed a variable universal life insurance policy to lapse in June 2021. This dispute is pending.

In a dispute filed on November 13, 2017, an investor alleged that he did not authorize Donald Herndon to invest his account in a life insurance annuity with surrender charges. The client also alleged that Ameriprise Financial Services had placed “unreasonable barriers” on the transferring of their funds to another firm. The client sought $133,000 but the dispute was denied.

However, investors should be aware that firms can deny disputes without an outside review. Investors can still seek out FINRA arbitration after a denial and potentially recover their funds.

What is Variable Universal Life Insurance?

Variable Universal Life Insurance policies (VULs) invest a portion of investors’ premiums to accrue value over time. However, VULs frequently risk lapsing, and these investments are not guaranteed to generate returns.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which requires discretionary accounts to receive authorization from the client and firm before discretionary trading can occur.

Background Information

Donald Herndon has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Donald Herndon is a registered broker in 13 states and a registered investment adviser in Ohio and West Virginia.

He has also worked for IDS Life Insurance Company (CRD#:6321).

Kurta Law Can Help

If you worked with Donald Herndon and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.