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Offshore Annuity Complaint Against Infinex’s Eric Garcia
Coral Gables financial advisor Eric Garcia (CRD# 5909532) allegedly recommended an unsuitable annuity, according to a recent investor complaint. Financial Industry Regulatory Authority records show that he is a broker and an investment advisor with Infinex Investments, and that he is also a financial consultant with Popular Community Bank.
Annuity Complaint Alleges Six-Figure Damages
Mr. Garcia’s BrokerCheck report discloses one investor complaint against him. Filed in October 2022, it alleges that as a representative of Infinex Investments, he recommended the clients “invest the majority of their net worth in an offshore annuity when they sought safety and preservation of capital.” The pending complaint alleges damages of $100,000.
What Is An Offshore Annuity?
According to Estate Street Partners, an offshore annuity is an investment product much like a deferred variable annuity. Generally speaking, they are owned by offshore trusts—that is, trusts formed outside the US. The annuity’s owner makes payments during an accumulation period, either via a single lump sum or a series of smaller payments. The deposited funds gather interest, with taxes deferred until the owner or annuitant starts withdrawing them. Offshore annuities are generally associated with increased investment options, tax advantages, and freedom from US jurisdictions (and their reporting requirements). As the Wall Street Journal explains, they are also generally managed by hedge funds rather than mutual fund or insurance company investment managers, promising investors higher performance than domestic variable annuity investments. At the same time, that report explains, “offshore annuities can be riskier, because of the sophisticated investment strategies employed by hedge-fund managers. And because they’re offshore investments, they typically aren’t subject to the protections that U.S. securities laws offer.” Advisors who unsuitably recommend that their customers invest in offshore annuities may be held liable in the event of damages.
Garcia Is Based in Coral Gables
Eric Garcia has spent eleven years as a broker, according to his FINRA-maintained BrokerCheck report. Based in Coral Gables, Florida, he has been a representative of Infinex Investments since 2017. He is also registered with Popular Community Bank. Before he joined Infinex, he spent time at Essex National Securities in Miami Lakes, Florida and at Morgan Stanley Smith Barney in Miami, Florida. More information about his history in the securities industry is available via FINRA. (Information current as of November 16, 2022.)
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