Rodney Ferguson Subject of a Variable Universal Life Insurance Dispute

Rodney Ferguson (CRD #: 2482868), a broker registered with NYLife Securities, has racked up his eleventh investor dispute. This disclosure appears on his BrokerCheck record, accessed on November 27, 2023. Keep reading if you have questions. 

On October 2, 2023, an investor alleged that Rodney Ferguson failed to clearly explain a variable universal life insurance policy. The investor alleged they did not wish to purchase a life insurance policy. 

Investor Disputes in 2023

There are other disputes from 2023. 

On March 20, 2023, an investor alleged that Rodney Ferguson recommended and sold multiple redundant fixed insurance policies and fixed annuities that were not suitable for her financial goals or needs. 

The investor also alleged that a life insurance application contains a signature that was not hers. She further alleges that the broker took out a loan against her life insurance policy without her knowledge or consent. 

The investor is seeking $2.5 million. 

On March 16, 2023, an investor alleged that Rodney Ferguson provided recommended life insurance policies and fixed annuities, in spite of the fact that the investor had stated he wanted liquid investments with growth potential that could provide retirement income. 

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Recommending unsuitable life insurance and annuities violates this rule, as does forgery. 

FINRA Rule 2111 – Unsuitable 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. Investments that do not take these factors into account may be unsuitable. 

What is a VUL? 

A Variable Universal Life insurance policy (VUL) has two notable features: a tax-free death benefit for beneficiaries and an investment portfolio. Part of each premium payment is invested—but returns depend on the performance of these investments, so the policy is not guaranteed to increase in value. Additionally, VULs are often at risk of lapsing, which negates their purported tax benefits.

Background Information 

Rodney Ferguson 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 

He is a registered broker in 26 states and D.C. He is also a registered investment adviser in Florida, Missouri, Texas, and Virginia. 

Rodney Ferguson  has registered with the following firms: 

• NYLife Securities (CRD #: 5167) 
• Eagle Strategies (CRD #: 110826) 
• PFIC Securities Corporation (CRD #: 34941) 
• Magna Investments (CRD #: 16511) 
• Cigna Financial Advisors (CRD #: 145) 

Kurta Law Can Help 

If you have worked with Rodney Ferguson 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 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.