Equitable, Consultant Sued Over Rollover Into an Annuity

“At all times, when providing financial advice, Turk, individually and as a representative of the Equitable defendants, owed a fiduciary duty to his clients, including plaintiff, and was obligated to act in the best interest of his clients,” Russo says.

The purchase: Russo says in the complaint that he was 68 in December 2006 and living on $3,600 in retirement income per month.

Turk, a friend of Russo’s daughter, encouraged Russo to replace his existing retirement account. Turk gave Russo an annuity illustration in February 2007. He never provided a copy of the contract, an explanation of the illustration or other documents, Russo says.

The application showed that Russo had a net worth of $1.2 million and that he had received a prospectus on CD-ROM, although he had not provided financial information and had not received a CD-ROM, according to the complaint.

Russo reports that, earlier this year, Equitable told him in a letter that he had failed to exercise his GMIB rights on time and also directed him to his monthly statements.

The statements reflect deductions taken by the AXA Equitable affiliates for a GMIB charge, Russo says.

Rockland County Supreme Court. Credit: New York State Unified Court System