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Did Yudi Rosenzweig Fail to Disclose Variable Annuity Fees?

Yudi Rosenzweig (CRD #4110421), a broker registered with MML Investors Services, is facing allegations of misrepresentation involving a variable annuity. This disclosure appears on his BrokerCheck record, accessed on October 10, 2023. Investors may also have engaged his services through Goldcrest Financial Services. 

On September 18, 2023, an investor alleged that Yudi Rosenzweig advised them to partially redeem their variable annuity to fund a whole life insurance policy. The investor alleges that because of this redemption he has incurred significant taxes. Instead of redeeming the variable annuity, the investor alleges they had cash available elsewhere they could have used for the same purpose. 

The investor is seeking $350,000. 

Variable Annuities

Variable annuities are complex investments that can be unsuitable for a number of reasons. Chief among them are their associated surrender charges and tax penalties. 

What is an Unsuitable Investment?

FINRA Rule 2111 requires brokers to evaluate whether an investment strategy fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

  • Age
  • Risk tolerance
  • Time horizon (i.e., how long the investor plans to hold the investment)
  • Investing experience
  • Tax status
  • Financial goals

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

Previous Investor Disputes

On November 5, 2020, an investor alleged Yudi Rosenzweig recommended an unsuitable variable annuity. The investor alleged that she could not access her principal without incurring a surrender charge. The dispute was denied, but investors should know that firms can deny disputes without any external review. Following a denial, investors may still be able to recover their funds via FINRA arbitration.

There is a previous investor dispute that alleges Yudi Rosenzweig did not disclose variable annuity fees. 

Background Information 

Yudi Rosenzweig 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 

He is a registered broker in 16 states. 

Kurta Law Can Help

If you worked with Yudi Rosenzweig and have concerns about your investments, please contact us today at 877-600-0098 or 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.