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Allstate Financial Services Alert

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Allstate Finance Services is the stockbrokerage and financial services company of the giant Allstate Insurance Company. Allstate describes itself as “Sometimes life can get in the way of saving for your future, and it’s hard to know how to prioritize your goals. Allstate agents offer a variety of choices to help you and your family put your financial goals within reach.”

Allstate offers 529 College Savings plans, Annuities, IRA, mutual funds, and life insurance products. Allstate Financial Services has its main offices in Lincoln, Nebraska and has more than 8,500 representatives.

Allstate Financial Services typically emphasize the purchase of mutual funds, variable annuities, and ETFs (Exchange Traded Funds) over individual stock trading. In review, our concerns will focus on the suitability of these complex financial products, and whether you, the customer, really understood the complexity of the financial product. The opinion of StockBrokerLawyer is that many of these complex financial products are created to enable a stockbroker or financial advisor to justify asserting that the product is safe or conservative, or low cost, or even guaranteed–when the fine print qualifications on this part are so specific that what the stockbroker is saying really isn’t true.

StockBrokerLawyer.com seeks to investigate the account losses of customers of Allstate Financial Services for any misconduct that resulted in significant financial losses. According to FINRA reports, Allstate and its brokers have had a number of significant regulatory issues. In 2004, Allstate was one of twenty-nine investment firms fined for late reporting of required information about its stockbrokers. According to the discipline, Allstate Financial had a forty-four percent failure rate.

In 2003, Allstate Financial Services stockbroker and investment advisor Neil Brooks was barred from the securities industry for conducting a fraudulent hedge fund offering. The alleged hedge fund fraud took place for a three-month time span in 2002. The hedge fund fraud in this case came in the form of selling securities such as limited partnership interests as well as promissory notes, which is a too common wrong for stockbrokers gone bad. Mr. Brooks further provided false and misleading information to his clients.

StockBrokerLawyer.com has found that Allstate Financial tends to over-recommend particular mutual funds and other financial products, that have higher-than-ordinary levels of commissions and costs. By recommending variable annuities and other complex investments, sometimes with disclosures that easy overwhelm any ordinary person, the stockbroker is able to up-sell the customer, referencing security and safety, when the investment is really much riskier and uncertain than the customer understands. We are ready and able to help you understand what your stockbroker really recommended, and how those recommendations were improper, to help you recover your account losses.


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