Michael Escobar Allegedly Recommended Unsuitable Variable Annuities

Michael Escobar (CRD #: 5743023), a broker registered with Avantax Investment Services, was involved in a recent dispute, according to his BrokerCheck record, accessed on May 28, 2022. If you have questions about Michael Escobar’s conduct as a broker, read on.

Alleged Unsuitable Investment Recommendations

In a dispute filed on February 18, 2022, an investor alleged that Michael Escobar recommended the purchase of two unsuitable variable annuities. This dispute was denied by the firm.

Investors should know, however, that firms can deny disputes without any outside review. Denied disputes can still be taken to FINRA for arbitration, and investors may still be able to recover their losses.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to investors’ profiles. An investor’s profile describes their risk tolerance, investment goals, age, and other characteristics.

Investors who have lost money through unsuitable investment recommendations may be able to recover their losses through FINRA arbitration.

Discharge from Mutual of Omaha Investor Services

On July 29, 2014, Michael Escobar was fired from Mutual of Omaha Investor Services after allegedly failing to comply with firm policies regarding obtaining authentic customer signatures on required forms and the use of forms pre-signed by customers.

The firm alleges it received an affidavit of forgery from a non-securities customer attesting to the forgery of the client’s signature on a delivery receipt form for a fixed life insurance product sold through Mutual of Omaha’s affiliated insurance company.

FINRA Rule 2010

Forgery violates FINRA Rule 2010, which requires that brokers maintain high standards of professional honor and ethical behavior.

Background Information

Michael Escobar has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• 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

Michael Escobar is a registered broker in nine states and a registered investment adviser in Texas.

In the past, he has also worked for the following firms:

• Sagepoint Financial (CRD#:133763)
• Summit Brokerage Services (CRD#:34643)
• LPL Financial (CRD#:6413)
• Mutual of Omaha Investor Services (CRD#:611)

Kurta Law Can Help

If you worked with Michael Escobar 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.