Sonn Law Group is reviewing a pending FINRA arbitration involving Benjamin Paul Burkley, CRD No. 5189154. Burkley is currently registered with LPL Financial and Stratos Wealth Partners.
According to Burkley’s FINRA BrokerCheck report, the claimant alleges that registered representatives advised him to liquidate a variable annuity and invest the proceeds in other investments.
The claimant alleges that the recommendation resulted in detrimental tax consequences and the loss of income previously provided by the annuity. The arbitration seeks $750,000 in alleged damages.
The matter was served on June 16, 2026, and is identified as FINRA Case No. 26 01230. The disclosure also identifies related pending civil litigation in the Court of Common Pleas of Indiana County, Pennsylvania. No finding of wrongdoing has been entered. (FINRA)
Risks of Liquidating a Variable Annuity
A recommendation to liquidate an annuity can carry significant financial consequences. Depending on the contract, the investor could lose:
- Guaranteed income benefits
- Death benefits
- Tax deferred growth
- Guaranteed withdrawal benefits
- Principal protection features
- Other contractual guarantees
An investor may also face surrender charges, taxable income, replacement expenses, and exposure to new investment risks.
Before recommending an annuity liquidation, a financial professional should carefully evaluate the customer’s income needs, age, financial condition, tax circumstances, investment objectives, and the benefits that would be surrendered.
Potential Annuity Loss Claims
Depending on the evidence, claims involving the liquidation or replacement of an annuity may include:
- Unsuitable recommendations
- Failure to explain tax consequences
- Failure to disclose surrendered benefits
- Misrepresentation or omission
- Negligence
- Violations of Regulation Best Interest
- Failure to supervise
Investors should preserve the original annuity contract, benefit statements, replacement forms, tax records, account statements, and communications discussing the recommendation.
Sonn Law Group Is Investigating Annuity Claims
Sonn Law Group is investigating potential investor claims involving Benjamin Burkley, LPL Financial, Stratos Wealth Partners, variable annuity liquidations, lost income benefits, and harmful replacement recommendations.
The allegations described in the BrokerCheck report remain pending and have not been proven or formally adjudicated. Benjamin Burkley, LPL Financial, and Stratos Wealth Partners are entitled to contest the allegations.
