Client Sues Barred Broker Over ‘Devastating’ Life Insurance Plan
October 23, 2024 by Dinah Wisenberg Brin
Joshua L. Gottlieb, a former securities broker barred by the Financial Industry Regulatory Authority in 2017, faces a lawsuit from a client who alleges he suffered a “devastating” financial loss after buying a recommended life insurance program that was meant to secure a comfortable retirement and provide $12 million for his heirs.
Oregon resident Scott Alldridge and his Alldridge Family Holdings LLC filed a complaint Tuesday in U.S. District Court in Oregon against Ohio resident and insurance broker Gottlieb and two firms he leads, The Gottlieb Organization and Management Solutions LLC.
Wink’s Moore on the Market: “…a client who alleges he suffered a ‘devastating’ financial loss after buying a recommended life insurance program that was meant to secure a comfortable retirement and provide $12 million for his heirs.”
Using what? INDEXED LIFE.
[The client ] alleges breach of fiduciary duty, negligent misrepresentation, negligence and unjust enrichment in connection with [the] “sale and management of a defective premium-financed indexed universal life insurance, or IUL, program.”
No surprise- another premium financing case.
Attorneys for the prosecution claim “that the case is an example of the current regulatory environment, ‘which allows previously barred financial advisors to slide down the worm hole and sell extremely complex life insurance plans, all under the guise of investment advice, and frankly, make more money doing it.”
Yikes!
The counsel continues, “where we had one of these premium financing cases in five years, we now have several at various stages of litigation.”
What more can be said? -sjm
