A former broker who masterminded an annuity scheme to profit from the deaths of terminally ill patients has agreed to an $850,000 fine and to be banned from the securities industry, the U.S. Securities and Exchange Commission said on Thursday.
The broker, Michael Horowitz of Los Angeles, also admitted to wrongdoing as part of the settlement, the SEC said. The agency filed a civil action against Horowitz in March.
Variable annuities are investment vehicles designed to help retirees maintain a source of income.
Typically, insurance companies who sell the annuities will agree to make periodic payments to people who purchase the product.
But another common feature offered is a death benefit, in which the insurer pays the policyholder’s beneficiary under certain conditions.
Source: Reuters