Ex-Summit Brokerage Services Financial Advisor Francis Velten Barred Following Churning Allegations in Elderly Customers’ Accounts
Former New Port Richey, FL broker is also accused of selling away
Francis Joseph Velten, most recently an Ameriprise Financial Services broker, is now barred by the Financial Industry Regulatory Authority (FINRA). He’s accused of churning in older investors’ accounts and encouraging them to surrender their annuities and mutual fund holdings to buy bonus annuities. This caused them to pay surrender fees while he earned commissions from the transactions.
Churning, which involves excessively trading in customer accounts, is one of the ways many brokers will try to earn additional money through resulting commissions and fees. Unfortunately, this can cause investors substantial losses, especially if done in excess.
According to FINRA, Velten was also allegedly selling away, meaning these financial transactions that caused his elder investors financial harm were conducted without Summit’s approval or knowledge. This purported broker misconduct is said to have occurred while he was a Summit Brokerage Services financial advisor and was registered from 2006 to 2018. If this is the case, then Summit could be held liable for investors’ losses even if the firm was unaware of Velten’s activities.
A Florida financial advisor, Velten became an Independent Financial Group broker for a year. In 2020, he was an Ameriprise Financial registered representative for a few months before the firm asked him to resign in the wake of allegations against him.
Examples of past customer disputes involving Francis Velten
According to Francis Velten’s CRD, he worked twenty-seven years in the industry. He has nine customer disputes on record, including:
- 12/2016: Allegations of unsuitability were settled with this customer for $14,900.
- 4/2015: This variable annuity-related unsuitability claim was settled for $10K.
- 7/2012: Customers allege a loss of death benefits and guaranteed income following variable annuity exchanges. This was settled for $65K.
Other firms where Velten used to be registered include GunAllen Financial and AG Edwards & Sons.
Representing investors in recouping their losses caused by broker misconduct or negligence
Our skilled Florida broker negligence attorneys investigate investor claims involving former New Port Richey, FL financial advisor broker Francis Velten. If you are someone who worked with Velten while he was with Summit Brokerage Services, Ameriprise, or Independent Financial Group, call us at 800-259-9010 today. We can help you explore your legal options. In Florida, call (813) 560-2992.