Joseph J Bellini at EDWARD JONES – View Complaints, Disclosures, Scams and Audit Report (Updated 2023)

Disclosure #1 for Joseph Bellini

• • eventDate: 4/24/2008
  • Disclosure Type: Customer Dispute
  • Disclosure Resolution: Denied
  • Disclosure Detail :: Allegations: CLIENT CLAIMS THE FA CONVINCED HER TO CASH IN HER ANNUITY WITH ALLSTATE SEVEN MONTHS BEFORE IT MATURED AND AS A RESULT CLIENT INCURRED $9,533.46 IN PENALTIES. ADDITIONALLY, CLIENT CLAIMS FA DID NOT ROLLOVER THESE MONIES INTO A TAX DEFFERRED ACCOUNT WHICH RESULTED IN APPOX. $50,000 IN TAXES AND MOVED HER INTO A HIGHER TAX BRACKETT. FURTHER, CLIENT CLAIMS THE FA REFUSED TO SELL SECURITIES TO PAY FOR THE TAXES AND INSTEAD HAD HER TAKE OUT A LOAN AT 6.5% INTEREST. CLIENT CLAIMS SHE BELIEVES THE FA’S ACTIONS WERE EGREGIOUS IN NATURE AND SHE REFUSED TO ACCEPT THE ACCOUNT AS IT STANDS.
  • Damage Amount Requested: $60,000.00
  • Arbitration Docket Number:
  • Broker Comment: UNHAPPY WITH PERFORMANCE OF INVESTMENTS WITH SUNTRUST. FA STATED HE REVIEWED OPTIONS. FEES TO LIQUIDATE ALLSTATE ANNUITY WERE DISCUSSED SEVERAL OCCASIONS. FA STATED HE CONTACTED ALLSTATE, CLIENT CONTACTED ALLSTATE & ON 2/7/07 THEY CONTACTED ALLSTATE TOGETHER. DURING THESE CONTACTS YOU WERE BOTH INFORMED CDSC WOULD BE APPROX. $10,000 TO $11,000. AS INCEPTION DATE OF ALLSTATE CONTRACT WAS 8/9/01, IT WOULD NOT BE OUT OF CDSC PERIOD UNTIL 8/2008 OVER A YEAR AFTER ACTIVITY (NOT 7 MONTHS AS REFERENCED IN LTR). FA STATED POTENTIAL TAX CONSEQUENCES WERE ALSO DISCUSSED ON SEVERAL OCCASIONS & AT LEAST 1 TO 1 u00bd WEEKS PRIOR TO ACTIVITY TAKING PLACE. FA STATED BOTH CONTACTED ALLSTATE & EACH WERE PROVIDED WITH SAME COST BASIS FIGURE. ACCORDING TO FA HE DIRECTED CLIENT TO CONTACT TAX PROFESSIONAL TO DISCUSS & DETERMINE ACTUAL TAXES. BOTH LEARNED LATER THIS COST BASIS FIGURE PROVIDED BY ALLSTATE WAS NOT ACCURATE. IT IS ULTIMATELY CLIENT’S RESPONSIBILITY TO MAINTAIN THIS INFORMATION. FA STATED CLIENT CONTACTED HIM ON WAY OUT OF TOWN (WITH NO TIME TO DISCUSS) NEEDING TO LIQUIDATE SECURITIES TO COVER TAXES. FA STATED, AS THIS WAS APPROXIMATELY A WEEK BEFORE TAXES DUE, CLIENT MIGHT BE BETTER OFF TO USE MARGIN LOAN FOR SHORT-TERM INCURRING A RELATIVELY SMALL INTEREST CHARGE TO ALLOW TO DISCUSS SECURITIES THAT WOULD BE BEST TO LIQUIDATE & TO ENSURE MONEY WOULD BE AVAILABLE TO CLIENT IN TIME. THE MARGIN LOAN WAS OPEN 4/7/08 TO 4/29/08 & INTEREST WAS INCURRED IN AMOUNT OF $100.37. BASED ON REVIEW, IT DOES APPEAR ACTIVITY IN QUESTION WAS DISCUSSED WITH FA & DONE WITH AUTHORIZATION. FURTHER, APPEARS FEES & TAXES WERE ESTIMATED BASED ON INFORMATION PROVIDED BY ALLSTATE. AS A RESULT, IT WOULD APPEAR CLIENT WAS AWARE OF FEES & TAXES (BASED ON INFORMATION KNOWN AT THE TIME) ASSOCIATED WITH ACTIVITY & WERE ADVISED TO SEEK ADVICE FROM TAX PROFESSIONAL PRIOR TO ACTIVITY TAKING PLACE. CLAIM DENIED.