Did Douglas Chapman Misrepresent a Variable Annuity?

Douglas Chapman (CRD #: 2230482), a broker and investment advisor registered with Securian Financial Services, is involved in an investor dispute alleging misrepresentation. This is according to his BrokerCheck record, accessed on March 12, 2022.  

According to the allegations filed on November 15, 2021, Douglas Chapman told his client that she would be guaranteed a 6% step-up return on a Jackson Variable Annuity living benefit rider. The guarantee is reportedly 5%. The firm denied the case.

Investors should know that firms can deny disputes without any external review and that they can still pursue FINRA arbitration and recover their losses following a denial.

This is Douglas Chapman’s third denied case alleging misrepresentation. 

Prior Denied Disputes

• On October 3, 2016, Douglas Chapman allegedly misrepresented a death benefit guarantee. According to the investor, the death benefit guarantee was not what was requested or understood to have been received.
• On April 8, 2015, Douglas Chapman allegedly misrepresented a contract during the sale of an annuity.

Misrepresentation usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest. 

Brokers may be liable if they misrepresent facts or fail to disclose crucial material facts when recommending stocks, securities, investment strategies, or financial products.

FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor. 

Settled Dispute

On July 26, 2016, Douglas Chapman allegedly recommended an unsuitable indexed life policy. According to the investor, the fees charged to her accounts were unwarranted, and she demanded a refund. The case was settled for $90,000.

An investment is only considered “suitable” if it meets the suitability criteria outlined in FINRA Rule 2111. A broker must have exercised due diligence and have an adequate reason for believing that an investment will also be suitable or beneficial for the investor. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration if their broker recommended an unsuitable investment. 

Background Information

Douglas Chapman has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Douglas Chapman is a registered broker in 24 states and a registered investment advisor in New Jersey. 

Besides Securian Financial Services, Douglas Chapman has also worked WS Griffith Securities (CRD#:10410).

Kurta Law Can Help

If you worked with Douglas Chapman and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.