The allegations read: Prior to the involvement of mr. Golan, customer [customer] purchased two whole life policies offered by jackson national life in 1987. The customers had taken sizeable loans against these policies totaling approximately $177,000.00. With the assistance of mr. Golan, the customers surrendered the two jackson national life policies and invested in a single premium, second to die life insurance policy offered by lincoln national life in 2008 in order to eliminate the loans and significantly increase their death benefits. In 2002, customers invested qualified funds in variable annuities offered by scudder later known as commonwealth annuity and life insurance company. In order to preserve their gains on the brink of a declining market, the customers engaged in 1035 exchanges in early 2007 in order to invest in indexed annuities offered by american investors life insurance company later known as aviva. During the second quarter of 2009, the customers, through 1035 exchanges, invested their qualified funds in indexed annuities offered by forethought life insurance company in order to substantially increase their living benefits/income stream. In addition to her ira annuity, customer [customer] invested nonqualified funds in a variable annuity offered by scudder later known as commonwealth annuity and life insurance company in 2002. The following year customer [customer] invested additional non-qualified funds in a separate variable annuity offered by genworth. In order to preserve her significant gains in these annuities on the brink of a declining market, customer [customer] engaged in 1035 exchanges in early 2007 in order to invest in two separate indexed annuities offered by american investors life insurance company, later known as aviva. In the second quarter of 2009, customer [customer], surrendered and received two checks from aviva, she then took out $25,000 for personal reasons and reinvested the difference in one indexed annuity offered by forethought life insurance company in order to substantially increase her living benefits/income stream. All of the foregoing transactions were discussed with the customers at great length and were suitable for the customers' stated investment objectives. Throughout the life of the foregoing annuities, the customers never lost any of their principal investment, and in fact, they enjoyed significant gains in living and death benefits despite taking substantial withdrawals in order to make gifts to their children. Finally, the customers also approached mr. Golan about investing in real estate, but mr. Golan convinced them to only invest a minimal amount ($5,000.00) in a reit. While the customers may sustain some losses relating to this small investment, it was not guaranteed and the customers were aware of the market and liquidity risks. In their statement of claim, customers generally allege violations of florida statute \\u00a7 825.103, unsuitability, breach of regulatory requirements/negligence, breach of fiduciary duty, negligence and gross negligence, and violation of industry rules arising out of investments in various annuities and a real estate investment trust (reit).
