The National Association of Securities Dealers has filed a complaint against John Steven Blount, a registered representative who used to sell variable annuities and mutual funds for NY Life Securities.

The complaint states that, in the case of 11 variable annuity customers, Blount recommended unsuitable sales totaling $6 million, reaping nearly $220,000 in commissions. Blount’s customers were older conservative investors whose risk tolerance did not dictate the sale of a variable annuity or allocation into riskier sub-accounts. Blount also misled customers about the nature of the variable annuity products they were purchasing, neglecting to mention penalties for early withdrawals and asserting that their investments would be "backed by a AAA company."

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