Our firm is investigating former FBL Marketing Services securities broker Chad M. Boal (CRD# 4686669), in Burlington, Iowa who was registered through the firm’s Burlington, Iowa office, for potential investment-related misconduct involving a variable universal life insurance policy. FINRA reports that Boal is not currently registered as a broker.
Chad M. Boal’s Career History
Chad M. Boal entered the securities industry in 2003. According to FINRA, he was registered with FBL Marketing Services, LLC from December 2003 through January 2016 in Burlington, Iowa. FBL Marketing Services is the only securities firm listed in his FINRA registration history.
Boal’s last reported employment history also identified the following positions:
- FBL Marketing Services: Registered representative beginning in November 2003 in West Des Moines, Iowa.
- Farm Bureau Financial Services: Insurance agent beginning in October 2014 in West Des Moines, Iowa.
FINRA cautions that employment information reported as “present” may no longer reflect a broker’s actual employment after the broker has ceased being registered. Boal’s securities registration with FBL Marketing Services ended in January 2016, and BrokerCheck currently identifies him as not registered.
Boal passed the Series 6 Investment Company Products/Variable Contracts Representative Examination in December 2003, the Series 63 Uniform Securities Agent State Law Examination in December 2003, and the Series 26 Investment Company Products/Variable Contracts Principal Examination in April 2014. His BrokerCheck report also lists the Securities Industry Essentials examination.
Chad M. Boal Fraud Allegations and Investor Complaints Explained
FINRA’s BrokerCheck report lists one disclosure event involving Chad M. Boal: a settled customer dispute concerning an alleged misrepresentation about the funding and longevity of a variable universal life insurance contract.
The existence of a customer complaint or settlement does not establish that Boal committed fraud or violated securities laws. FINRA expressly warns that allegations appearing in BrokerCheck may be contested and that matters can be settled for business reasons without an admission or finding of wrongdoing.
FINRA-Reported Variable Universal Life Insurance Complaint
FBL Marketing Services received the written customer complaint on December 10, 2019. The customer alleged that Boal represented that, by increasing the policy premiums by $700 per month, the variable universal life insurance contract would remain in force until the insured reached age 95, when the customer would purportedly receive $100,000.
The complaint identified the product as insurance and listed estimated alleged damages of $103,080.70. FINRA’s report clarifies that the customer did not specify a precise damages figure; the listed amount was the firm’s good-faith estimate of the alleged damages. The dispute did not proceed to arbitration or civil litigation.
For context, the disclosure can be summarized as follows:
- Reporting source: FBL Marketing Services, LLC
- Action: Written customer complaint
- Complaint received: December 10, 2019
- Alleged conduct: Misrepresentation concerning the monthly premiums required to maintain a VUL policy and the policy’s expected value or benefit at age 95
- Product: Variable universal life insurance
- Estimated alleged damages: $103,080.70
- Arbitration or civil litigation: No
- Disposition: Settled
- Disposition date: January 16, 2020
- Reported cash settlement: $0
- Boal’s individual contribution: $0
The settlement was structured as a policy-maintenance arrangement rather than a cash payment. According to the firm’s statement, an affiliated life insurance company agreed to keep the policy in force until maturity as long as the customer continued paying monthly premiums of $700. The affiliated insurer also agreed to waive policy charges exceeding the customer’s monthly premium payments.
FINRA’s summary lists no additional customer disputes or other disclosure categories for Boal. The single customer dispute is classified as final and settled.
Investors who purchased variable insurance products through Chad M. Boal or FBL Marketing Services may wish to review their policy illustrations, annual statements, premium requirements, cost-of-insurance charges, projected lapse dates, surrender values, and death-benefit assumptions. A VUL policy can be affected by insurance expenses, administrative charges, investment performance, premium funding and the insured person’s age. Representations suggesting that a policy will remain in force until a particular age should therefore be evaluated against the contract’s actual terms and assumptions.
To obtain a copy of Chad M. Boal’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rules Potentially Relevant to the Allegations
FINRA Rule 2010 requires member firms to observe high standards of commercial honor and just and equitable principles of trade. In the context of this complaint, an inaccurate or materially misleading representation about the premiums necessary to maintain a VUL policy could potentially be inconsistent with those standards. Whether Rule 2010 was violated would depend on evidence concerning what was represented, the policy terms, the available illustrations and disclosures, and Boal’s understanding of those facts. FINRA’s BrokerCheck report does not state that a regulator found Boal in violation of Rule 2010.
FINRA Rule 2111, which governed broker suitability obligations during the period preceding Regulation Best Interest, required a broker to have a reasonable basis for believing that a recommended security or investment strategy was suitable for the customer. The analysis included the customer’s age, financial situation, needs, objectives, investment experience, time horizon, liquidity requirements and risk tolerance. The rule also prohibited recommending an ongoing financial commitment unless the broker had a reasonable basis to believe the customer could meet that commitment. If Boal recommended that the customer increase VUL premiums by $700 per month, a suitability analysis could examine whether the customer could reasonably afford that continuing obligation and whether the policy was appropriate for the customer’s insurance and financial objectives. The complaint was settled without a regulatory finding that Boal violated Rule 2111.
FINRA Rule 2020 prohibits a member from inducing the purchase or sale of a security through a manipulative, deceptive or fraudulent device. Because a variable universal life policy contains securities-related investment components, a knowingly or recklessly false material representation used to induce the purchase, continued funding or retention of such a policy could potentially implicate this rule. Proving a Rule 2020 violation would require substantially more than showing that a projection was inaccurate; it would require evidence satisfying the applicable fraud or deception standard. Boal’s BrokerCheck report contains a customer allegation, not a FINRA adjudication or finding of fraud.
For over 45 years, Robert Wayne Pearce has helped investors recover losses caused by broker fraud, negligence, and unsuitable recommendations. His firm, The Law Offices of Robert Wayne Pearce, P.A., represents clients nationwide on a no-recovery, no-fee basis. Call (800) 732-2889 or email pearce@rwpearce.com for a free case review with an experienced securities attorney.
