Military Personnel Sue Financial Planners for Consumer Fraud |
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A class action lawsuit has been filed in the Western District Court of Kentucky against First Command Financial Planning, Inc. for violations of the Kentucky Consumer Protection Act. Class members seek compensatory and punitive damages and a cease and desist order requiring the defendants to stop the activity.
Specifically, the complaint alleges that the defendants market their services and products to military personnel and their families under the guise of financial planning. The defendants persuade consumers to purchase financial and insurance products that no reasonable financial planner would encourage or advise a client to purchase.
More specifically, the compliant alleges that the defendants promoted and sold Fidelity Destiny II Investment Plans to Kevin and Jennifer Morrison. They also convinced them to change insurance companies and to purchase insurance and now claim that these were not prudent investments. The Morrisons allege that the defendants use respected people within the community, usually retired military officers to act as agents of the investment scheme for added credibility during consultations. Because of the tight-knit structure of many of the groups, especially in the military, it is often difficult to detect fraud and military personnel don't often report the fraudulent activity because of the relationships.
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