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Ameritas had already rescinded such policies issued to six customers before the disciplinary action.
Showing posts with label fined. Show all posts
Showing posts with label fined. Show all posts
Friday, August 28, 2009
Ohio Advisors Busted by SEC for Inflating Fees
The SEC charged two Ohio-based investment advisors with fees-related fraud. The two advisors, Robert Pinkas and Tab Keplinger, of Brantley Capital Management (which was also charged), with overstating the value of the investment portfolio so they could charge higher fees.
Two failing private companies unfortunately made up more than half of the investment portfolio of BCM, an investment company based in New York.
The investment period in question was from 2002 to 2005. Pinkas was CEO of both Brantley and BCM. Keplinger was the part-time CFO of both companies.
Pinkas has engaged an attorney to fight the charges, while Keplinger has settled the charges without admitting or denying the allegations. He consented to a fine with a five-year ban on serving as an officer or director of a public company.
Two failing private companies unfortunately made up more than half of the investment portfolio of BCM, an investment company based in New York.
The investment period in question was from 2002 to 2005. Pinkas was CEO of both Brantley and BCM. Keplinger was the part-time CFO of both companies.
Pinkas has engaged an attorney to fight the charges, while Keplinger has settled the charges without admitting or denying the allegations. He consented to a fine with a five-year ban on serving as an officer or director of a public company.
Monday, August 24, 2009
Whistleblower Leads to $302 Million Fine Against Quest Diagnostics
(by L.A.S)
(Not sure if I ever referred to this case before, but it bears repeating anyway.)
The New York Times reported in April of this year that Quest will pay a fine of $302 million as a result of a defective test kit produced by its subsidiary, NID. NID produced a kit that was supposed to detect levels of parathyroid hormone. However, the kit produced such inaccurate and unreliable lab results, that doctors complained.
Shockingly, there are no standards regarding how reliable a lab test has to be, nor testing to ensure that it is reliable. To put it another way, there is no standardization and no FDA approval needed.
A California businessman and biochemist named Thomas Cantor tried to blow the whistle with detailed complaints about the test, but was rebuffed. He later hired some attorneys to help him.
Cantor will receive a share of the settlement amounting to about $45 million, which he states he intends to donate to drug research.
The NY Times article is here: www.nytimes.com/2009/04/16/business/16tests.html?_r=1&partner=rss&emc=rss
(Not sure if I ever referred to this case before, but it bears repeating anyway.)
The New York Times reported in April of this year that Quest will pay a fine of $302 million as a result of a defective test kit produced by its subsidiary, NID. NID produced a kit that was supposed to detect levels of parathyroid hormone. However, the kit produced such inaccurate and unreliable lab results, that doctors complained.
Shockingly, there are no standards regarding how reliable a lab test has to be, nor testing to ensure that it is reliable. To put it another way, there is no standardization and no FDA approval needed.
A California businessman and biochemist named Thomas Cantor tried to blow the whistle with detailed complaints about the test, but was rebuffed. He later hired some attorneys to help him.
Cantor will receive a share of the settlement amounting to about $45 million, which he states he intends to donate to drug research.
The NY Times article is here: www.nytimes.com/2009/04/16/business/16tests.html?_r=1&partner=rss&emc=rss
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