Investors Allege Tommy Bolton Recommended Unsuitable Variable Annuities

Tommy Bolton (CRD #: 1398115), a broker registered with Stifel, Nicolaus & Company, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on November 16, 2024. If you have questions about his alleged conduct as a broker, read on.

Investor Dispute

On October 14, 2024, several investors filed a dispute alleging that Tommy Bolton made four unsuitable recommendations of variable annuities from 2021 to 2023.

The clients also alleged that he misrepresented these annuities, resulting in the clients paying a total of $269,222.73 in surrender charges in 2024. This dispute was denied by the firm.

However, firms can deny disputes without an external review, and investors may still be able to recover damages by seeking out FINRA arbitration.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must take into account the information described in an investor’s profile, such as their tax status, risk tolerance, and investing experience.

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

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

What are Variable Annuities?

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. 

Background Information

Tommy Bolton 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 9 – General Securities Sales Supervisor – Options Module Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 8 – General Securities Sales Supervisor Examination (Options Module & General Module)

Tommy Bolton is a registered broker in 19 states and the District of Columbia. He is also a registered investment adviser in North Carolina.

He has also worked for the following firms:

• Morgan Stanley Smith Barney (CRD#:149777)
• Citigroup Global Markets (CRD#:7059)
• Lehman Brothers (CRD#:7506)
• E. F. Hutton & Company (CRD#:235)

Kurta Law Can Help

If you worked with Tommy Bolton 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 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.