NASD said Thursday that it had fined David Lerner Associates Inc. $400,000 and suspended it from engaging in new variable life insurance or variable annuity business for 30 calendar days.
From November 1998 to February 2004 the Syosset, N.Y., brokerage firm engaged in replacement sales of variable life insurance and variable annuity contracts that violated NASD and New York State regulations intended to ensure that people replacing existing contracts receive full and clear information beforehand, the industry regulator said. The Lerner firm neither admitted nor denied wrongdoing.
The regulator also fined and suspended two of the firm's principals. Martin Lerner, the firm's executive vice president of sales, was suspended from acting in a supervisory capacity for 20 business days. And Russell Moss, the director of insurance services, was suspended in all capacities for 20 business days. Each must pay $25,000 of the fine against their firm.
