Judge denies new trial for Jeffrey Cutter on Advisors Act violation
January 6, 2026 by John Hilton
A Massachusetts judge rejected Jeffrey Cutter’s bid to reverse his guilty verdict on improper annuity sales. In her Dec. 23 order, Judge Denise J. Casper also denied Cutter’s request for a new trial.
Wink’s Moore on the Market: Are you a life insurance agent who also does AUM?
Do you offer annuities as a solution for your clients?
Then no doubt the Cutter case has had your attention over the past few years.
John Hilton with InsuranceNewsNet reports new information on this case today. Apparently, “a Massachusetts judge rejected Jeffrey Cutter’s bid to reverse his guilty verdict on improper annuity sales. In her Dec. 23 order, Judge Denise J. Casper also denied Cutter’s request for a new trial.”
Curious to know the straw that broke the camel’s back, in this most recent development?
“While CFG disclosed that it received commissions from insurance companies, the jury found CFG negligent in not also disclosing the specific upfront amount of those commissions for a limited number of clients.”
What gets me upset about this case is this-
“According to the U.S. Securities and Exchange Commission complaint, Cutter earned 7-8% commissions on annuity sales as an agent, compared to 1.5-2% fees while managing assets as a fiduciary advisor.”
IT IS ERRONEOUS TO SUGGEST THAT INSURANCE AGENT COMMISSIONS BE COMPARED TO ASSETS UNDER MANAGEMENT FEES. GET EDUCATED!
The SEC is suggesting that a one-time commission be compared to a fee that is charged perpetually each year. It doesn’t take a whole lot of smarts to know that this is not an appropriate comparison.
Over the typical ten-year surrender charge period of an indexed annuity, Cutter would have been paid the equivalent of about 0.70% – 0.80% annually, compared to the his 1.5% – 2.0% AUM fee. Over that same ten-year period, an investment advisor would make an aggregate of 15% – 20%, compared to the 7% – 8% that Cutter was being paid on annuity sales.
Perhaps regulatory entities that aren’t educated on certain financial products should not try to regulate them? -sjm
