Andrew Johnson, a retired Navy veteran from North Carolina, reached a confidential settlement with Ameritas Mutual Holding Co. and Ameritas Life Insurance Co. after a federal court case alleged the firm and broker Allison Terlip sold concentrated, unsuitable equity-linked annuities. Court filings claim Mr. Johnson and his wife liquidated roughly $926,000 in diversified Treasury securities and mutual funds to purchase three proprietary Ameritas products. The settlement closes a case that also raised questions about broker disclosure after Ameritas allegedly concealed a felony aggravated assault charge against Ms. Terlip.
What happened
The Johnsons allege they were steered into concentrated proprietary annuities that replaced a diversified portfolio of Treasury securities and Vanguard mutual funds. The complaint describes a “sophisticated scheme to defraud” retirees through concentrated, illiquid, and unsuitable equity-linked annuity products. Ameritas allegedly overstated the safety and income potential of the annuities while understating their liquidity constraints. The Johnsons further contend the firm concealed material information about Ms. Terlip’s felony aggravated assault with a deadly weapon charge and no-contest plea from July 2023.
The parties reached a mediated settlement in proceedings overseen by a federal judge. Under the terms, the Johnsons agreed to surrender the three annuities. Ameritas initially attempted to shift approximately $80,000 in surrender charges onto the Johnsons despite a prior agreement to absorb those costs. The dispute over surrender charges triggered a hearing that was later canceled when the parties jointly requested case dismissal while retaining jurisdiction to enforce the settlement. The exact financial terms of the settlement remain confidential.
Key facts
| Item | Details |
|---|---|
| Plaintiff | Andrew and Jennifer Johnson |
| Defendants | Ameritas Mutual Holding, Ameritas Life Insurance, Allison Terlip |
| Products sold | Three proprietary equity-linked annuities |
| Amount liquidated | ~$926,000 |
| Prior holdings | Treasury securities and Vanguard mutual funds |
| Broker disclosure issue | Alleged concealment of felony aggravated assault charge |
| Settlement terms | Confidential; surrender of three annuities required |
| Surrender charge dispute | ~$80,000 shifted to plaintiffs before reversal |
| Venue | Federal court, North Carolina |
The broker’s record and red flags
Ms. Terlip allegedly entered a no-contest plea to felony aggravated assault with a deadly weapon in July 2023. The Johnsons’ complaint states they would have refused to work with her had Ameritas disclosed the charge. The case highlights a recurring failure in the annuity distribution chain: firms that do not vet or disclose broker criminal history before allowing them to solicit retirement-aged clients.
Three warning signs should have prompted enhanced review. First, the complete liquidation of safe, diversified Treasury and mutual fund holdings into a single issuer’s proprietary products is unusual for a retirement portfolio. Second, equity-linked annuities are complex instruments with opaque crediting formulas that few retirees fully understand. Third, the concentration of $926,000 in one firm’s products exposed the Johnsons to counterparty risk not present in their prior government-backed and diversified holdings.
What investors should do
Investors holding equity-linked or indexed annuities should understand the product structure before signing. These products often carry multi-year surrender periods, steep early-withdrawal penalties, and limited secondary-market liquidity. A retiree with $926,000 in Treasuries and mutual funds typically earns income with daily liquidity and principal stability. Converting that balance into proprietary annuities eliminates diversification and locks capital behind withdrawal gates. Ask your advisor whether the product charges a surrender fee and how long the lockup lasts.
Retirees considering annuities should insist on a second opinion from a fee-only fiduciary advisor. An independent review costs a few hundred dollars and may reveal restrictions or fees that the selling agent did not disclose. Calculate the total cost of surrender versus continued holding before making any changes.
How to recover your losses
Investors who lost money in unsuitable annuity sales may have grounds for recovery through arbitration, mediation, or direct negotiation. The Johnsons opted for federal court because the case involved insurance products sold through state-licensed agents. Recovery depends on proving the product was unsuitable for the investor’s risk profile and that the seller concealed material risks or broker history.
State securities regulators and state insurance departments can also investigate suitability violations. Preserve all account statements, sales literature, correspondence, and suitability questionnaires. If you suspect a similar pattern, act before surrender deadlines expire. An attorney can issue a preservation letter to lock evidence in place before records are destroyed or altered.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
If you lost money in concentrated or unsuitable annuity products sold by Ameritas or another firm, you may have grounds for recovery. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- Visit our website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Each case is unique, and outcomes depend on specific facts and applicable law.
