Secure Retirement Financial & Insurance Services Corp.

Allegations: THE THE DEPARTMENT OF BUSINESS OVERSIGHT OF THE STATE OF CALIFORNIA (DBO) ALLEGED THAT ADVISER, IN CONTRADICTION OF STATE RULES UNDER CORPORATIONS CODE 25238 AND CALIFORNIA CODE OF REGULATIONS (CCR) SECTION 260.238, RELEASED A CLIENT'S FUNDS WITHOUT AUTHORIZATION OR PROPER CONSENT FROM THE ACCOUNT HOLDER BY TAKING DISBURSEMENT INSTRUCTIONS FROM THE CLIENT'S SPOUSE AND RELEASING THE FUNDS TO THE SPOUSE; THAT ADVISER LOANED MONEY TO A CLIENT; AND THAT ADVISER DID NOT MAINTAIN CURRENT CLIENT SUITABILITY RECORDS AND DID NOT ESTABLISH AN UNEARNED INCOME ACCOUNT ON ITS FINANCIAL RECORDS. Status: Final Sanction Detail: MONETARY FINE OF $45,000 PAYABLE IN THREE INSTALLMENTS: $15,000 DUE JULY 1, 2020; $15,000 DUE OCTOBER 1, 2020; $15,000 DUE DECEMBER 1, 2020. Summary: TO AVOID THE EXPENSE OF A HEARING AND OTHER POSSIBLE COURT PROCEEDING SECURE RETIREMENT HAS ENTERED INTO A CONSENT ORDER TO DISCONTINUE VIOLATIONS OF STATE RULES FOR INVESTMENT ADVISERS AS ALLEGED IN ITEM 7. ABOVE AND PAY A MONETARY FINE OF $45,000 AS DETAILED IN 12.B. ABOVE. THE SPOUSE OF A CLIENT PERPETRATED A FRAUD TO RECEIVE THE UNAUTHORIZED DISBURSEMENTS. UPON THE FINDING BY THE DBO AND PRIOR TO ENTERING INTO THE ORDER SECURE RETIREMENT ESTABLISHED IDENTIFY THEFT AND CLIENT DISBURSEMENT REQUEST POLICIES. IN THE CASE OF THE LOAN, THE PRESIDENT OF SECURE RETIREMENT MADE A SHORT-TERM INTEREST-FREE LOAN TO A FRIEND WHO WAS ALSO A CLIENT FOR THE PURCHASE OF A SECURITY. A NEW EMPLOYEE STILL LEARNING THE ACCOUNTING SYSTEM HAD NOT ENTERED THE UNEARNED INCOME ACCOUNT ON THE FINANCIAL RECORDS. SECURE RETIREMENT HAS ESTABLISHED CLIENT SUITABILITY POLICIES. NO CLIENTS WERE FINANCIALLY HARMED.