Ameritas Fined by Financial Industry Authority (FINRA)

The Financial Industry Regulatory Authority (FINRA) fined Ameritas in a case in which one of its brokers convinced customers to borrow against their homes to buy life insurance.
FINRA took action against Ameritas for failing to adequately oversee New Jersey broker Nancy Ziering. She convinced customers to borrow against their homes in order to buy variable universal life insurance policies to fund college or retirement expenses. The company was fined $100,000.
FINRA issued a statement in which it said that customers should not put their homes at risk in order to buy securities. Ziering recruited customers in seminars and other college-planning presentations. She sold at least 90 variable universal life policies through Ameritas. FINRA feels that the plans she presented were much too complicated and required customers to adhere to strict plans for 20 years.
Ameritas had already rescinded such policies issued to six customers before the disciplinary action.