Nolan Pendleton Allegedly Recommended an Unsuitable Variable Annuity

Nolan Pendleton (CRD #: 5350768), a broker registered with NYLife Securities, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, as of April 17, 2024. Investors may have engaged his services via Hudson Pendleton Financial Group. 

Investor Allegations 

On December 8, 2023, an investor alleged that Nolan Pendleton recommended an unsuitable variable annuity. The variable annuity was allegedly unsuitable because of the fee structure, illiquidity, and restrictions on investment options. 

What is a Variable Annuity? 

Variable annuities are complex investments. They are insurance products that come with an investment component. The associated fees, surrender charges, and potential tax liability can negate any supposed benefits they offer. Furthermore, the risk associated with this type of illiquid investment makes it unsuitable for many investors. 

FINRA Rule 2111 – Unsuitable Illiquid Investments

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Brokers must also consider the investment time horizon and the investor’s liquidity needs – illiquid investments often do not suit a client’s best interests. Investments that do not take these factors into account may be unsuitable. 

Investors who rely on brokers for recommendations may be able to recover losses from unsuitable investment recommendations by pursuing FINRA arbitration.

Background Information

Nolan Pendleton has passed the following exams: 

• Series 66 Uniform Combined State Law Examination
• Series 63 Uniform Securities Agent State Law Examination 
• Series 6TO Investment Company Products / Variable Contracts Representative Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 6 Investment Company Products / Variable Contracts Representative Examination 

He is a registered broker in 17 states and is a registered investment adviser in Georgia and Texas. 

During his 12 years of experience, Nolan Pendleton has registered with the following firms: 

• NYLife Securities (CRD #: 5167)
• Eagle Strategies (CRD #: 110826) 
• Park Avenue Securities (CRD #: 46173) 
• Wells Fargo Advisors (CRD #: 19616) 

Kurta Law Can Help 

If you have worked with Nolan Pendleton and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.