Tr?id=566623520170033&ev=PageView&noscript=1

FINRA Arbitrators Award $2.25 Million Over Life Insurance Strategy

Posted on July 17th, 2026 at 11:52 AM
FINRA Arbitrators Award $2.25 Million Over Life Insurance Strategy

From the desk of Jim Eccleston at Eccleston Law

A former financial advisor must pay $2.25 million to clients who alleged he recommended a high-risk life insurance strategy that resulted in significant losses, according to a Financial Industry Regulatory Authority (FINRA) arbitration award.

As reported by AdvisorHub, the dispute involved claims brought by a Chicago family representing the estate of Peter Apostal against former broker Matthew K. Wilkes and several firms where he previously worked, including Wells Fargo, Raymond James Financial Services, FSIC, and TrustFirst. According to AdvisorHub, the family alleged that Wilkes recommended a premium-financed indexed universal life insurance (IUL) strategy that relied on borrowed funds to support a market-linked insurance policy.

The claimants asserted that the strategy exposed the family to substantial risk while generating significant commissions for Wilkes. They sought more than $9.5 million in damages and alleged, among other claims, unsuitable recommendations, breach of fiduciary duty, negligence, and failure to supervise.

Wilkes and the claimants ultimately agreed to a stipulated award, avoiding a full evidentiary hearing. The arbitration panel determined that Wilkes was liable for $2.4 million in damages. However, the award was reduced by $150,000 to account for funds previously paid or agreed to by an insurance carrier on his behalf, resulting in a final payment obligation of $2.25 million.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

1791390362 Law
October 7, 2026
SEC Charges Investment Fund Operators in Alleged $8.7 Million Fraud Scheme

The Securities and Exchange Commission (SEC) has charged Christopher Kenji Dinelli and Jacob David "Kobe" Frankel with allegedly defrauding 35 investors of more than $8.7 million through Beyond Alpha Ventures LLC and investment advisory firm Beyond Equity LLC.

1791220249 Law
October 5, 2026
House Passes Bill to Restore Tax Deduction for Financial Fraud Victims

Victims of financial fraud may soon receive additional tax relief under legislation that overwhelmingly passed in the House of Representatives.

1790960250 Law
October 2, 2026
FINRA Arbitrators Award Schwab Client $1.34 Million in Cryptocurrency Scam Dispute

A Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services arbitration panel awarded nearly $1.34 million in compensatory damages to a Charles Schwab & Co.