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Investment Fraud Alert: Mark Jeffery Martin’s History of Customer Disputes
Investors who have worked with financial advisor Mark Jeffery Martin (CRD# 1945626) should be aware of his concerning history of customer disputes and potential miscont. According to FINRA BrokerCheck records, Martin has been the subject of multiple customer complaints, including a current pending civil litigation involving a failed insurance product that has left investors with significant losses.
Martin, currently affiliated with Integrity Alliance, LLC in Imperial, Pennsylvania, has built a career spanning over three decades in the financial services industry. However, his record shows a pattern of customer disputes that may indicate problematic sales practices, particularly involving annuity products.
Current Civil Litigation: Colorado Bankers Life Annuity
As of November 2024, Martin is facing civil litigation in the Court of Commons Pleas of Allegheny County, Pennsylvania (Docket #GD-24-013336). The lawsuit alleges that Martin sold a fixed annuity issued by Colorado Bankers Life, which subsequently became insolvent. This has potentially left the client with significant losses, estimated to exceed $5,000 according to the FINRA disclosure.
This case highlights a critical risk that many investors face: the financial strength and stability of insurance companies backing annuity products. When an insurance company becomes insolvent, as Colorado Bankers Life did, annuity holders may lose access to their funds or face substantial losses.
Previous Customer Complaints and Disclosures
Beyond the current litigation, Martin’s BrokerCheck report reveals another recent customer dispute from June 2024. In this case, a client alleged that Martin failed to properly explain the terms of two annuity contracts—one variable and one fixed indexed—sold in December 2021. The client sought approximately $31,500 in surrender charge waivers, though this complaint was ultimately closed without action in January 2025.
These combined complaints paint a concerning picture of Martin’s sales practices, particularly regarding annuity products and the clarity of his disclosures to clients about their features, risks, and limitations.
Understanding the Risks of Fixed Annuities
The Colorado Bankers Life case illustrates a critical risk that many investors don’t fully understand when purchasing fixed annuities. Unlike variable annuities, which are securities regulated by FINRA and the SEC, fixed annuities are insurance products regulated by state insurance commissioners.
This regulatory distinction means:
- Different protection mechanisms: Fixed annuities don’t have SIPC protection
- Insolvency risk: Annuity holders may have limited recourse if the issuing insurance company fails
- State guaranty association limitations: While state guaranty associations may provide some protection, coverage limits vary by state and may not cover full investment amounts
For Pennsylvania residents like those affected in Martin’s case, the Pennsylvania Life and Health Insurance Guaranty Association provides coverage for fixed annuities, but with significant limitations, typically capping protection at $250,000 per person per insurer.
Martin’s Professional Background and Oversight Concerns
Mark Jeffery Martin has been in the financial services industry since 1989, holding various securities licenses including:
- General Securities Representative (Series 7)
- Investment Company Products/Variable Contracts Representative (Series 6)
- Uniform Securities Agent State Law Examination (Series 63)
He’s currently registered in three states (Florida, Pennsylvania, and South Carolina) and holds the professional designation of Certified Financial Planner (CFP®).
What’s particularly concerning is the extensive network of outside business activities Martin reports, raising questions about oversight and conflicts of interest:
- M2 (Squared) Wealth Management: Martin reports spending 160 hours monthly (140 during securities trading hours) on this business
- Signifigance Financial Group DBA Kuorum Partners, LLC: He allocates 80 hours monthly (70 during securities hours) as Executive Director of Operations
- Mark J Martin: Fixed insurance sales business requiring 45 hours monthly
- My Preferred Insurance: Another fixed life and annuity sales business requiring 20 hours monthly
The substantial time commitments to these outside businesses—especially those operating during securities trading hours—raise serious questions about adequate client service, supervision, and potential conflicts of interest.
Red Flags for Current Clients of Mark Jeffery Martin
If you’re currently a client of Mark Martin at Integrity Alliance, several aspects of his background warrant careful consideration:
1. Multiple Outside Business Activities with Significant Time Commitments
The sheer number of outside business activities and the extensive time Martin reports spending on them raise concerns about his capacity to properly serve clients and the potential for conflicts of interest. The reported 140 hours during securities trading hours for M2 Wealth Management alone suggests virtually all of his securities business time is devoted to this outside activity.
2. History of Annuity-Related Customer Disputes
The pattern of disputes related to annuity products suggests potential issues with how Martin explains these complex financial products to clients. Annuities often have features that can be difficult for average investors to understand, including:
- Surrender periods and associated penalties
- Tax implications
- Insurance company financial stability risks
- Fee structures and expenses
3. Limited Regulatory Oversight for Some Products
Martin’s involvement with both securities and insurance products creates a regulatory gap where some products he sells may have less oversight than others. This “dual registration” as both a securities representative and insurance agent means he can recommend products with varying levels of regulatory protection.
The Insolvency of Colorado Bankers Life: A Warning Sign
The Colorado Bankers Life Insurance Company (CBL) insolvency serves as a stark reminder of the risks associated with insurance-based investment products. CBL was placed into liquidation in 2021 following financial difficulties, leaving many annuity holders in limbo regarding their investments.
This situation exemplifies why financial stability assessments of insurance companies are critical when considering annuity purchases. Many investors focus exclusively on annuity features and returns without evaluating the financial strength of the company backing those guarantees.
Key warning signs that were present before CBL’s failure included:
- Lower financial strength ratings from major rating agencies
- Higher-than-market interest rate offerings to attract new business
- Regulatory issues in multiple states
- Corporate structure complexities and related-party transactions
Steps for Investors Who Worked with Mark Martin
If you’ve invested with Mark Jeffery Martin, particularly in annuity products or other insurance-based investments, there are several important steps you should consider:
1. Review Your Investment Portfolio
Conduct a thorough review of all investments purchased through Martin, with particular attention to:
- Any annuity products, especially those from lesser-known insurance companies
- The financial strength ratings of companies backing your annuities (A.M. Best, Moody’s, S&P)
- Surrender periods and associated penalties
- Annual fees and expenses
2. Assess Disclosure Quality
Consider whether Martin fully explained the following aspects of your investments:
- All associated fees and surrender charges
- How the insurance company’s financial stability impacts your investment
- Alternative investment options with potentially lower fees or risks
- Conflicts of interest related to his compensation for selling these products
3. Evaluate Recommendation Suitability
Assess whether the investments recommended by Martin were truly suitable for your specific:
- Investment objectives and financial goals
- Risk tolerance levels
- Time horizon for needing access to your funds
- Tax situation
- Overall financial circumstances
4. Determine Potential Recovery Options
If you’ve suffered losses from investments recommended by Martin, particularly related to Colorado Bankers Life or other insurance products that experienced issues, several recovery avenues may be available:
- State Guaranty Association Claims: For fixed annuities from insolvent insurers
- FINRA Arbitration: For securities-related products and misconduct
- Civil Litigation: For situations involving serious misconduct or larger losses
- Regulatory Complaints: With state insurance commissioners and securities regulators
Understanding Legal Remedies for Unsuitable Annuity Sales
Investors who received unsuitable annuity recommendations or weren’t properly informed about risks may have several legal remedies available:
FINRA Arbitration (for Variable Annuities)
Because variable annuities are securities products, disputes involving them can be addressed through FINRA arbitration, which offers:
- A typically faster resolution than court litigation
- Arbitrators with specialized securities knowledge
- The ability to recover actual damages, costs, and in some cases, attorneys’ fees
State Court Litigation (for Fixed Annuities)
For fixed annuities, which aren’t securities, state court litigation may be necessary, as is currently occurring in the Colorado Bankers Life case against Martin. These cases often involve:
- Claims based on state insurance laws and regulations
- Consumer protection statute violations
- Common law claims like negligence, misrepresentation, or breach of fiduciary duty
State Insurance Department Complaints
Filing complaints with state insurance departments can be particularly effective for issues involving fixed annuities, potentially leading to:
- Regulatory investigations
- Mediation assistance
- Fines against the agent
- Support for subsequent legal actions
The Importance of Proper Annuity Disclosure
The disputes involving Martin highlight a common issue in the financial industry: inadequate explanation of complex products like annuities. Proper disclosure should include clear explanations of:
- Surrender Periods and Charges: How long funds are locked up and the penalties for early withdrawal
- Insurance Company Financial Strength: The stability of the company backing the annuity guarantees
- Fees and Expenses: All costs associated with the product, both upfront and ongoing
- Tax Implications: How the product will be taxed upon withdrawal
- State Guaranty Association Coverage: What protections exist if the insurance company fails
- Alternative Investment Options: Comparable products with different feature sets and risk profiles
Martin’s Multiple Business Entities: A Compliance Red Flag
The extensive web of business entities associated with Martin raises significant compliance concerns. His reported outside business activities include:
- M2 (Squared) Wealth Management: Selling variable and non-variable products
- Mark J Martin: Fixed insurance sales
- My Preferred Insurance: Fixed life and annuity sales
- Signifigance Financial Group DBA Kuorum Partners, LLC: Insurance marketing
- Other non-investment activities including roles with the Shriners and as an ordained minister
This complex business structure may create confusion for clients about which entity they’re working with and what regulatory protections apply to their investments. It also raises questions about proper supervision by Martin’s broker-dealer, Integrity Alliance.
Certified Financial Planner Designation: Higher Standards Required
As a Certified Financial Planner (CFP®), Martin is held to the CFP Board’s ethical standards, which include a fiduciary duty to act in clients’ best interests. The customer disputes in his record raise questions about adherence to these standards, particularly the duties of:
- Loyalty: Placing clients’ interests above his own
- Disclosure: Providing full and fair disclosure of all material facts
- Care: Acting with the care, skill, prudence, and diligence of a professional
- Following Client Instructions: Acting in accordance with the scope of engagement
Clients of CFP® professionals should expect investment recommendations that are truly in their best interest, not merely suitable or driven by commission considerations.
Protecting Your Financial Future
Mark Jeffery Martin’s history of customer disputes, particularly relating to annuity products, underscores the importance of careful due diligence when selecting a financial advisor. The pending civil litigation involving Colorado Bankers Life highlights how insurer insolvency can create real losses for investors in what they believed were “safe” products.
If you’ve invested with Martin, particularly in annuity products, a thorough review of your investments is warranted. The complex nature of annuities, combined with Martin’s extensive outside business activities, creates an environment where misunderstandings or potentially unsuitable recommendations could occur.
Our experienced investment fraud attorneys have successfully represented numerous investors who suffered losses due to unsuitable annuity recommendations, inadequate disclosures, and insurer insolvencies. We understand the complex legal and regulatory framework governing these cases and can help you pursue the recovery you deserve.
Don’t wait to explore your legal options. The time to act is now, while evidence remains available and time limitations have not expired.
Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
