Advisor Charged With Defrauding Clients in Annuity Switching Scheme

March 28, 2023 by Jeff Berman

The Securities and Exchange Commission charged an advisor in Falmouth, Massachusetts, and his firm with defrauding clients as part of an annuity replacement scheme that caused the clients to incur a total of $640,000 in surrender charges between 2018 and 2022.

In a complaint filed Friday in U.S. District Court for the District of Massachusetts, the SEC alleged Jeffrey Cutter, 55, and his firm, Cutter Financial Group, recommended that their advisory clients invest in fixed indexed annuities that paid Cutter a significant upfront commission without adequately disclosing his and CFG’s financial incentive to sell those products.

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Originally Posted at ThinkAdvisor on March 21, 2023 by Jeff Berman.