← Broker database 2025-05-16
Todd Leightey Suspended for Unsuitable Variable Annuity Recommendations
According to FINRA, Todd Allen Leightey of Upper Sandusky, Ohio was fined $5,000 and suspended from association with any FINRA member in all capacities for four months for making unsuitable variable annuity recommendations and providing inaccurate information on applications.
Leightey recommended that three customers purchase variable annuities without a reasonable basis to believe the transactions were suitable based on their age, financial situation, liquidity needs, and investment time horizon.
One recommendation to a married couple, one of whom was a senior, resulted in more than half of their net worth being invested in variable annuities. For another customer, Leightey recommended a $6,000 variable annuity when the customer had no interest in or need for the product's particular features.
Variable annuities are complex products with surrender periods during which withdrawals trigger fees. They are generally unsuitable for customers who may need access to their funds or who don't need the specific features annuities provide.
Additionally, Leightey inaccurately stated on applications that customers intended to use annuitization and death benefit features when they did not, and misstated two customers' intended investment horizons. These inaccuracies caused the firm to collect and maintain false information that might have triggered supervisory review had the accurate information been provided.
Providing inaccurate information on applications can circumvent supervisory controls designed to identify potentially unsuitable recommendations.
The suspension is in effect from June 16 through October 15, 2025.
Investors considering variable annuities should ensure they understand all features, fees, and surrender periods, and confirm that the product meets a genuine need in their financial plan.