Publicly available records published by the Financial Industry Regulatory Authority on July 27, 2016 indicate that Rhode Island-based MML Investors Services broker Karley Carto has been named in a pending customer complaint. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Ms. Carto (CRD# 6055603).
Karley Carto has spent four years in the securities industry and has been registered with MML Investors Services in Warwick, Rhode Island since September 2015. She was previously registered with NYLife Securities in Johnston, Rhode Island (2012-2015). She is a registered broker and investment adviser with six US states: Arizona, Connecticut, Massachusetts, New Hampshire, Rhode Island, and South Dakota.
According to her BrokerCheck report, Karley Carto has received one customer complaint, one pending customer complaint, and one withdrawn customer complaint.
In June 2016, a customer alleged Karley Carto, while employed at NYLife Securities, recommended an unsuitable New York Life variable annuity. The customer is seeking $1,600,000 in damages in the pending complaint.
In December 2015, a customer alleged Karley Carto, while employed at NYLife Securities, did not adequately inform him of the surrender charges associated with the fund rollover of an existing annuity to a New York Life variable annuity. The complaint settled in March 2016 for more than $19,600.
In 2015, a customer alleged Karley Carto, while employed at NYLife Securities, misrepresented material facts related to an unsuitable annuity product. The customer sought damages exceeding $126,900 in the complaint, which was withdrawn.
Though similar to mutual funds, variable annuities have three primary additionally features which mutual funds do not: a tax-deferred treatment of earnings, a death benefit, and payout options that can provide guaranteed income for the rest of the investor’s life. A common complaint regarding variable annuity investments is that a broker or investment adviser failed to inform an investor about the various sales charges and fees associated with variable annuities. In particular, many aggrieved investors file complaints with investors who, they allege, failed to educate them about a variable annuity’s surrender charge. A surrender charge is a sales fee incurred when investors withdraw money from the variable annuity within a certain period of time after the purchase—typically within six to eight years, though the specific number depends on the product. Surrender charges are typically used to pay a commission to your broker or investment adviser, and are typically a percentage of the amount withdrawn. Brokers who fail to properly educate their customers about a product’s surrender charge may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.
If you have suffered losses while investing with Karley Carto, you may be entitled to a recovery. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we suggest you avoid delay. Call 877-238-4175 now to speak to an attorney for free.