Architect Of VA Scheme Agrees To Be Barred From Securities Industry
|Federal Information & News Dispatch, Inc.|
Among the admissions made by Horowitz in the settlement, he knew that if the "stranger annuitants" did not die within a matter of months, his customers would be locked into unsuitable, highly illiquid long-term investment vehicles that they would be able to exit only by paying substantial surrender charges. He also submitted at least 14 trade tickets containing materially false statements concerning how long his clients intended to hold their annuities while knowing that his broker-dealer would not have approved his annuities sales if he had provided truthful timing information concerning his customers' intention to use the annuities as short-term investment vehicles.
"Horowitz devised a scheme in which he used terminally ill patients' private information for personal gain, and misled his brokerage firm into approving the variable annuity sales," said
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