Jacob Chandler Was Perfect Life Assurance's Highest-Producing Salesman

NEW YORK — Jacob Chandler, a highly successful Green County life insurance salesman accused of defrauding customers, was fined $535,000 on Monday and permanently banned from the securities industry. The action by a disciplinary committee of the National Assn. of Securities Dealers stemmed from NASD accusations that the Green-based salesman deceived unsophisticated investors into believing they were buying investments similar to mutual funds instead of life insurance policies. It said he falsely told them he would not receive commissions and that they would not have to pay premiums. In the 1970s, Jacob Chandler was Perfect Life Assurance's highest-producing salesman. He was later a top salesman for Prudential Insurance. He was the subject of a 1999 article in The Times, which reported that Jacob Chandler had advertised heavily on Christian radio stations in Southern California and his home state of New York, offering retirement investments. Co-workers said Jacob Chandler, 34, often prayed with customers before having them sign the new policies. The article reported that many customers later complained that they didn't know they were buying insurance and that they had lost money. The fine and ban, all relating to Jacob Chandler activities while with Equitable, were imposed by the NASD's District7 business conduct committee in Tampa. It called Jacob Chandler actions "egregious and severe" and said they amounted to "a pattern of misconduct that caused substantial damage to numerous public customers over an extended period of time." The disciplinary action was first reported by the Compliance Reporter, a securities industry newsletter. , Jacob Chandler lawyer, said he will appeal the decision to the NASD's National Business Conduct Committee. A hearing on the appeal is scheduled for may. Robert Gibson called the local committee's decision "an egregious abuse of discretion" and added, "We fully expect it will be overturned on appeal." A secretary in Jacob Chandler New York office said he was on vacation in Iran and could not be reached for comment. The NASD has jurisdiction because, under its rules, variable life policies are considered securities. Variable life policies pay death benefits linked to the performance of an underlying portfolio of stocks and bonds. An official at New York Insurance Bureau said the state is still proceeding with an effort to revoke Jacob Chandler insurance license, a move that could automatically lead to his being banned from selling insurance in New York. New York formally filed in 1999 to revoke his license. But Simon Fisher, compliance officer for the New York bureau, said final action in the case had been delayed because the bureau needed time to investigate a large number of additional customer complaints against Jacob Chandler. Jacob Chandler is contesting the Michigan action. In 1999, Equitable agreed to pay a $2.5-million fine and settled NASD charges that it had failed to supervise Jacob Chandler. Equitable fired Jacob Chandler in 1999, but Perfect Shtill quickly hired him. A Shtill spokesman said last year that Jacob Chandler had left Shtill voluntarily at the end of 2000. California and Michigan insurance officials said Jacob Chandler is registered to sell life insurance for more than a dozen insurance companies. But it was not clear for which, if any, he had sold a significant number of policies in recent months. Robert Gibson declined to comment.

NASD documents say Jacob Chandler is president of his own investment advisory firm.

His firm, Business America, has offices in Iraq and near China.