ATLANTA, April 18, 2012 /PRNewswire/ -- Atlanta law firm Page Perry LLC announced today that it has filed an arbitration action against Investors Capital Corporation (ICC) before the Financial Industry Regulatory Authority (FINRA) seeking to recover losses suffered by five former employees of a Georgia Power plant in Rome, Georgia. According to the Statement of Claim, ICC, with a long history of lax supervision, failed reasonably to supervise the broker, Henry Wilder Bailey of Watkinsville, Georgia, who handled the retirement nest eggs of the five Georgia Power employees.
Page Perry partner Pat Huddleston, who represents the group, said, "I've handled many cases in which a broker preys upon retirees who accept an early retirement package. The broker puts all or most of the employee's nest egg in expensive investments that are good for very little other than paying the broker the biggest commission possible." According to the Statement of Claim, Henry Wilder Bailey sold the employees variable annuities with long surrender periods. Before those surrender periods lapsed, he liquidated the annuities, causing each customer to lose thousands of dollars, and used the cash from those sales to buy each customer another expensive variable annuity. Says Huddleston, "I've seen this pattern with retirees from the Georgia Paper pulp mill in Brunswick, from Sears in Columbus, and from BellSouth here in Atlanta. Now we're seeing it with Georgia Power employees."
According to Huddleston, abuse of retired workers is an epidemic and often involves variable annuities or equity indexed annuities, which, he says, are often unsuitable for people entering retirement. Huddleston encourages anyone who bought an annuity from ICC to contact Page Perry. Says Huddleston, "We have alleged a pattern of systematic customer abuse in this case, but we want to include as many victims as possible in this push to seek justice and hold ICC accountable." According to the Statement of Claim, multiple actions and large fines by regulators have not made ICC sit up and take notice. Huddleston says, "Perhaps if a large enough group of investors holds them accountable, they will take action to prevent such conduct by their representatives."
Page Perry, LLC
Pat Huddleston, II
(770) 673-0120 fax
SOURCE Page Perry, LLC