NASD Clamps Down on Alleged Improper Selling of Annuities

The National Association of Securities Dealers came down hard on five securities firms and one individual today, announcing it charged them with improperly selling variable annuities. Separately, NASD also issued an investor alert, telling investors to be wary of exchanging variable annuity contracts, particularly bonus annuities.

Four of the firms -- Prudential Securities, First Union Brokerage Services, Allmerica Investments and Lutheran Brotherhood Securities -- settled with NASD while neither admitting nor denying charges. Also cited was Ralph C. Evans, an individual broker who was a registered representative with Morgan Stanley Dean Witter at the time of the allegation. Evans, too, settled the charges while neither admitting nor denying them; Morgan Stanley was not charged in the matter.

The five paid NASD a total of $112,000 in restitution and fines. Allegations against American United Life Insurance Company are still unsettled. ...