Nationwide Intentionally Delayed Mail Pickup To Avoid Same-day Pricing, SEC Alleges

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Nationwide Life Insurance Co. was accused by the Securities and Exchange Commission of intentionally delaying picking up the mail of its variable insurance contracts, so that it didn't have to process orders using the current-day's price. The SEC's order finds that Nationwide instructed the post office to divide mail directed to the P.O. box for its variable contract business from mail directed to P.O. boxes for other lines of business and maintain it in separate areas of the post office loading dock. Nationwide did this over a period of 15 years, the SEC alleges. Nationwide is paying an $8 million fine and neither admitting nor denying the charges.

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