According to FINRA, David John Wilkie was fined $10,000 and suspended for six months for concealing his beneficiary status on a customer's life insurance policy. Wilkie agreed to pay 60% of premiums in exchange for 60% of the death benefit, but failed to disclose this to his firm and denied it on compliance questionnaires. He then transferred the beneficiary to his son to further conceal the arrangement. When the customer died, the $125,000 benefit went to Wilkie's son who transferred it to Wilkie. Being a beneficiary creates conflicts of interest that firms must supervise. This arrangement gave Wilkie a financial interest in the customer's death. Investors should never name brokers or their family members as life insurance beneficiaries.