In a recent investor complaint, Imperial, Pennsylvania financial advisor Mark Martin (CRD# 1945626) has been accused of recommending an annuity issued by Colorado Bankers Life, which subsequently became insolvent. According to Financial Industry Regulatory Authority (FINRA) records, Martin is currently registered as both a broker and an investment advisor with Integrity Alliance, operating under the name Kuorum Partners.
The complaint, filed in November 2024, alleges that Martin sold the problematic annuity while serving as a representative of Securities Management & Research. The pending complaint states that the investor suffered damages of at least $5,000 due to the issuer’s insolvency.
Kuorum Partners’ website touts the firm’s services for high-net-worth clients and business owners, emphasizing their “trust and time-tested relationships with insurance company and banking partners.” The site also boasts of the firm’s “impressive” track record of “never missing a funding commitment” despite various global events over the past three decades.
Financial Advisor’s Background, Broker Dealer, and Past Complaints
Mark Martin brings 35 years of experience in the securities industry to his current roles at Integrity Alliance and Kuorum Partners, where he has been registered since 2021. Prior to his current position, Martin held registrations with several other firms, including:
- Securities Management & Research (Moon Township, PA; 2013-2021)
- Hornor Townsend & Kent (Moon Township, PA; 2004-2013)
- Securian Financial Services (St. Paul, MN; 1994-2004)
- MetLife Securities (Springfield, MA; 1989-1994)
Throughout his career, Martin has passed four securities industry qualifying exams: the Securities Industry Essentials Examination (SIE), the General Securities Representative Examination (Series 7), the Investment Company Products/Variable Contracts Representative Examination (Series 6), and the Uniform Securities Agent State Law Examination (Series 63). He holds active licenses in Florida, Pennsylvania, and South Carolina.
Explanation in Simple Terms and the FINRA Rule
In simple terms, the complaint against Mark Martin alleges that he recommended an annuity – a financial product that provides a regular income stream – issued by a company that later became insolvent, meaning it could no longer meet its financial obligations. As a result, the investor who purchased the annuity based on Martin’s recommendation suffered financial losses.
FINRA, the regulatory body overseeing brokers and investment advisors, has rules in place to protect investors from such situations. One such rule, FINRA Rule 2111, known as the “suitability rule,” requires financial advisors to have a reasonable basis for believing that a recommended investment or investment strategy is suitable for the investor based on their financial situation, risk tolerance, and investment objectives.
Consequences and Lessons Learned
The consequences of recommending an unsuitable investment, such as an annuity issued by a company that becomes insolvent, can be severe for both the investor and the financial advisor. Investors may suffer significant financial losses, while advisors may face disciplinary action, fines, and reputational damage.
As the famous investor Warren Buffett once said, “Risk comes from not knowing what you’re doing.” This case serves as a reminder of the importance of thorough due diligence when recommending investments to clients. Financial advisors must carefully evaluate the financial stability and reliability of the companies issuing the products they recommend.
According to a study by the North American Securities Administrators Association (NASAA), problematic financial advisors are often repeat offenders, with nearly 30% of advisors with disciplinary histories having multiple disclosures on their records. This underscores the need for investors to research their financial advisors’ backgrounds thoroughly and for advisors to prioritize their clients’ best interests above all else.
In conclusion, the complaint against Mark Martin serves as a cautionary tale for both investors and financial advisors. By understanding the risks involved, conducting proper due diligence, and prioritizing investor protection, we can work towards a more transparent and trustworthy financial services industry.
