March, 2025 | Based in Ft. Lauderdale, FL
Facing investment losses? Don’t wait another day to protect your financial future. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
Key Details About Victor M. Torres
- Full Name: Victor M. Torres
- CRD Number: 5919902
- Current Location: Ft. Lauderdale, FL
- Current Employer: Equitable Advisors, LLC
- Office Address: One Financial Plaza, Suite 1200, Ft. Lauderdale, FL 33394
- Registration Status: Currently registered with FINRA and licensed in Florida
- Experience: Licensed since 2012
- FINRA BrokerCheck: Three customer disputes, one employment termination
- Previous Employers: Equity Services Inc. (09/2018-10/2018), SagePoint Financial Inc. (11/2015-09/2016), Northwestern Mutual Investment Services LLC (12/2012-10/2013)
- Ability to Recover Losses: Investors may be eligible for FINRA arbitration to recover damages
The Rising Tide of Complaints Against Victor Torres
Our securities fraud attorneys are currently investigating allegations against financial advisor Victor M. Torres (CRD# 5919902), who is facing multiple FINRA arbitration claims related to the sale of unsuitable variable life insurance policies. According to FINRA BrokerCheck, Mr. Torres is currently employed with Equitable Advisors, LLC in Ft. Lauderdale, Florida, where he has worked since October 2018.
The complaints against Mr. Torres raise serious concerns about potential broker misconduct and regulatory violations. The most recent arbitrations, filed in October 2024, allege that Torres recommended unsuitable variable life insurance policies as tax shields, resulting in significant financial damages to his clients. These complaints come after a previously settled dispute from 2021 involving similar allegations of unsuitable insurance recommendations.
For investors who have worked with Mr. Torres, particularly those who purchased variable life insurance policies based on his recommendations, these developments warrant immediate attention and thorough review of your investment accounts.
Detailed Examination of the Allegations
The most recent FINRA arbitration complaints against Victor Torres paint a troubling picture of potential misconduct. Two separate cases were filed in October 2024:
- FINRA Case #24-02343: The claimants allege that Torres sold them two variable life insurance policies under the pretense that these would serve as effective tax shields. The claimed damages amount to $150,000.
- FINRA Case #24-02328: Filed just one day earlier, this separate claim involves similar allegations regarding the unsuitable recommendation of a variable life insurance policy marketed as a tax shield. The investor is seeking $50,000 in damages.
These cases follow a previously settled complaint from September 2021, where a client alleged that Torres sold them an unsuitable variable insurance policy. While the firm reportedly “found no basis to the customer complaint,” they nonetheless canceled the policy and refunded the client’s premiums of $13,336 “in the interest of good faith.” This pattern raises significant questions about Torres’s sales practices and adherence to suitability standards.
Variable life insurance products combine life insurance with investment components, making them complex financial instruments that may not be appropriate for all investors. When brokers recommend these products, they must ensure that the investments align with their clients’ financial objectives, risk tolerance, and overall financial situation. The allegations suggest that Torres may have failed to uphold these responsibilities, potentially prioritizing commissions over client interests.
Professional Background and Red Flags
Victor Torres’s professional history reveals several areas of concern that investors should be aware of. Torres entered the securities industry in December 2012 with Northwestern Mutual Investment Services, LLC. However, his tenure there was brief and ended under troubling circumstances.
According to FINRA BrokerCheck, Torres resigned from Northwestern Mutual in September 2013 “while under internal review for allegedly failing to disclose material underwriting information on his client’s applications for non-variable insurance.” This type of disclosure is a significant red flag, as it suggests potential ethical violations early in his career.
After leaving Northwestern Mutual, Torres’s employment history shows a pattern of relatively short tenures with multiple firms:
- Northwestern Mutual Investment Services, LLC (December 2012 – October 2013)
- SagePoint Financial, Inc. (November 2015 – September 2016)
- Equity Services, Inc. (September 2018 – October 2018)
- Equitable Advisors, LLC (October 2018 – Present)
This pattern of frequent movement between firms, particularly early in his career, is another potential warning sign. While there may be legitimate reasons for changing employers, serial job-hopping can sometimes indicate underlying problems in a broker’s practice or difficulty adhering to firm policies.
According to BrokerCheck, Torres has passed two securities industry exams: the Securities Industry Essentials Examination (SIE) and the Investment Company Products/Variable Contracts Representative Examination (Series 6). Notably, he has not passed any principal/supervisory exams or state securities law exams, limiting the scope of his securities activities to investment company products and variable contracts.
Torres also discloses involvement in an outside business activity through MT BIZ LLC, where he sells fixed insurance products. This dual role as both a registered representative and insurance salesperson highlights the potential for conflicts of interest, as commissions from insurance sales may influence recommendations.
Warning Signs of Unsuitable Investment Recommendations
The allegations against Victor Torres highlight several red flags that all investors should be vigilant about when working with financial advisors:
Misalignment with Financial Goals
Variable life insurance policies combine death benefits with investment components. While they can offer tax advantages in certain situations, they are not appropriate for all investors. These products typically carry high fees and surrender charges that can significantly impact returns, especially if the policy is surrendered early. Recommendations of such complex products should align with specific, documented financial goals.
High-Pressure Sales Tactics
Financial advisors pushing specific products, particularly those with high commission structures like variable insurance, may be prioritizing their own compensation over client interests. Legitimate advisors should thoroughly explain both the benefits and drawbacks of any recommended investment and never pressure clients into quick decisions.
Inadequate Disclosure of Fees and Risks
Variable insurance products often come with multiple layers of fees, including mortality and expense charges, administrative fees, fund expenses, and potential surrender charges. These costs can substantially reduce investment returns over time. Proper disclosure of all fees and risks is crucial for informed investment decisions.
Misleading Tax Benefit Claims
While variable life insurance can offer certain tax advantages, such as tax-deferred growth and potentially tax-free loans and withdrawals under specific conditions, these benefits must be accurately presented. Oversimplifying or overstating these advantages to market the product as a “tax shield” without thorough consideration of the client’s overall tax situation could constitute misrepresentation.
Churning or Replacing Policies
Some brokers engage in improper “churning” of insurance policies, encouraging clients to replace existing policies with new ones primarily to generate new commissions. This practice typically harms investors while benefiting the advisor through additional sales compensation.
Legal and Regulatory Framework
Financial advisors like Victor Torres are bound by numerous regulatory requirements designed to protect investors. Key obligations include:
FINRA Rule 2111 (Suitability)
This rule requires brokers to have a reasonable basis to believe that recommended transactions or investment strategies are suitable for their customers. This determination must be based on the customer’s investment profile, including factors such as:
- Age
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Time horizon
- Risk tolerance
- Other investments and financial information
The allegations against Torres suggest potential violations of this fundamental rule, particularly regarding the suitability of variable life insurance products for his clients.
FINRA Rule 2010 (Standards of Commercial Honor)
This broad ethical rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Misrepresenting investment characteristics or recommending unsuitable products would violate this standard.
FINRA Rule 2330 (Variable Insurance Sales Practices)
This rule specifically addresses variable insurance products, requiring that brokers have a reasonable basis to believe the customer has been informed about the product’s features, including surrender charges, potential tax implications, and costs.
SEC Regulation Best Interest
Since June 2020, brokers have been subject to Regulation Best Interest, which requires them to act in retail customers’ best interests and not place their own financial interests ahead of customers’ interests when making recommendations.
Guidance for Affected Investors
If you’ve worked with Victor Torres and purchased variable life insurance or other investment products based on his recommendations, consider taking the following steps:
1. Review All Account Documentation
Gather statements, contracts, application forms, and any communications related to your investment. Pay close attention to:
- The costs and fees associated with your policy
- Any surrender charges that might apply if you terminate the policy
- How the policy was presented to you during the sales process
- Whether the tax benefits were thoroughly and accurately explained
2. Assess the Product’s Suitability
Consider whether the recommended products align with your stated financial goals, risk tolerance, and overall financial situation. Variable life insurance may not be appropriate if:
- You need liquid investments with low fees
- You were seeking short-term investment opportunities
- You were not adequately informed about the risks and costs
- Your primary goal was not life insurance protection
- The tax benefits were overstated or misrepresented
3. Document Communications
If you have any emails, texts, letters, or notes from meetings with Mr. Torres, preserve them. These communications can be crucial evidence in establishing how the investments were presented and whether appropriate disclosures were made.
4. Understand Time Limitations
FINRA arbitration claims generally must be filed within six years of the events giving rise to the dispute. However, specific circumstances may affect this timeframe. Consulting with an experienced securities attorney promptly is essential to ensure your claim is filed within applicable deadlines.
5. Consider Regulatory Complaints
In addition to potential arbitration claims, you may file complaints with:
- FINRA’s Office of the Investor Advocate
- The SEC’s Office of Investor Education and Advocacy
- The Florida Office of Financial Regulation
How Our Securities Fraud Attorneys Can Help
Our investment fraud attorneys specialize in representing investors who have suffered losses due to broker misconduct. When investigating cases involving variable insurance products and unsuitable investment recommendations, our approach includes:
Comprehensive Case Evaluation
We conduct a thorough analysis of your investment history, focusing on the suitability of recommendations based on your specific financial situation and objectives. This evaluation includes a detailed review of all documentation and communications with your broker.
Forensic Financial Analysis
Our team works with financial experts to evaluate whether the recommended investments were appropriate and to quantify potential damages. For variable insurance products, this includes analyzing:
- Premium payments versus actual returns
- Fee structures and their impact on performance
- Surrender charges and their effect on investment liquidity
- Comparison with alternative investment options that might have been more suitable
FINRA Arbitration Representation
The vast majority of investor claims against brokers are resolved through FINRA arbitration rather than court litigation. Our attorneys have extensive experience navigating this specialized forum, including:
- Filing Statement of Claim documents
- Conducting targeted discovery to obtain evidence
- Presenting compelling arguments before arbitration panels
- Negotiating favorable settlements when appropriate
- Securing maximum recoveries for our clients
Contingency Fee Structure
We handle investment fraud cases on a contingency fee basis, meaning you pay no legal fees unless we recover money for you. This approach ensures that quality legal representation is accessible to investors regardless of their financial situation.
Don’t delay in protecting your financial rights and seeking recovery of your investment losses. If you’ve worked with Victor Torres and have concerns about unsuitable investment recommendations, reach out today. Contact our experienced investment fraud attorneys at Call 800-950-6553 or fill out our secure online form to schedule a complimentary case evaluation and learn about your legal options for recovery.
