Timothy Munley Allegedly Recommended Unsuitable Annuity Surrender

Timothy Munley (CRD #: 5649726), a broker formerly registered with W&S Brokerage Services, allegedly made an unsuitable recommendation, according to his BrokerCheck record, accessed on March 29, 2023. If you want to learn more about his conduct as a broker, read on.

Investor Dispute

On December 28, 2022, an investor alleged that Timothy Munley made an unsuitable recommendation to surrender a variable annuity and purchase a new one. The client further alleged that he executed unauthorized trades in the sub-accounts of this new annuity, resulting in market losses. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must examine the information contained in an investor’s profile, such as their risk tolerance, tax status, and age.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

FINRA Rule 3260

FINRA Rule 3260 prohibits brokers from conducting discretionary trading outside discretionary accounts, pre-approved for discretionary trading by the firm and the client.

What are variable annuities?

Variable annuities are complex investments. These policies can decline in value depending on the performance of the underlying security. Surrender charges, tax penalties, and other fees can make these policies unsuitable.

Discharge from W&S Brokerage Services

On June 3, 2022, Timothy Munley was fired from W&S Brokerage Services following a review of a customer complaint filed on April 25, 2022. The complaint alleged that Timothy Munley recommended the clients replace an existing product with a new product and that this transaction occurred without the clients’ documented approval.

During the firm investigation, Timothy Munley allegedly admitted to completing an application and electronically signing a client’s name without authorization or allowing the client to review the completed application.

FINRA Rule 2010

Forgery violates FINRA Rule 2010, which holds brokers to high standards of professional honor and just and equitable principles of trade.

Background Information

Timothy Munley has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 26 – Investment Company Products/Variable Contracts Principal Examination

He previously worked for W&S Brokerage Services (CRD#:8099).

Kurta Law Can Help

If you worked with Timothy Munley 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.