Andrew Martin Abern (CRD #1610607, Registered Principal, Miami, Florida)

was censured and fined $25,000. Without admitting or denying the findings, Abern consented to the described sanctions and to the entry of findings that he provided some customers with VA expense disclosure forms that contained inaccurate information; the forms understated the annual expenses that would be charged on the new annuities the customers were purchasing.

FINRA’s findings stated that Abern recommended that a customer purchase a VUL policy (Variable Universal Life Insurance Policy) and recommended that the customer refinance his home and use a portion of the refinance proceeds to partially fund the purchase of the VUL policy. This transaction was unsuitable
due to the significant potential risks posed by using mortgage proceeds to make securities investments and the high concentration level in the VUL investment.

This customer purchased the VUL for $332,000 using $100,000 in mortgage proceeds, and the remainder representing more than two-thirds of his liquid assets.
(FINRA Case #20100235351010)

The above information is from FINRA’s website listed under “Disciplinary and Other FINRA Actions, October, 2012.”

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