Silver Law Group represents investors in securities arbitration claims relating to variable annuities.
The Securities and Exchange Commission (SEC) is investigating the Variable Annuity Life Insurance Company (Valic), an American International Group, Inc. (AIG) subsidiary that specializes in retirement plans for schools, colleges, and not-for-profit organizations.
The investigation centers around whether Valic representatives were transparent about how much compensation they received when they sold clients higher-cost products. According to news reports, the concern is that Valic’s pay structure encouraged employees to recommend the high-cost products to clients.
Valic works primarily with teachers and school employees. The tactics Valic and AIG supposedly engaged in include pushing high-cost investments such as annuities instead of low-cost products like mutual funds.
The SEC investigation involves whether AIG/Valic may have encouraged and condoned this conduct by allowing employees to earn higher commissions on sales of these high-cost products irrespective of whether they were suitable for clients.
It has been reported that in connection with this investigation, several high-level Valic executives were put on administrative leave for the past several weeks.
Unfortunately, according to the SEC, teachers and military personnel have been found to be “particularly susceptible” to overpaying for financial services. This does not pair well with the increasing scrutiny on consumer-unfriendly annuity sales. It is rumored that this investigation is part of a more sweeping probe by the SEC into the sale of retirement products to teachers and public sector workers.
We Can Help
Scott Silver is a leading investment fraud attorney and has represented teachers and others in claims for the unsuitable sale of variable annuities. Recently, at the 2019 securities arbitration lawyer conference, Scott spoke about prosecuting variable annuity cases.
The recommendation of these high-cost products without proper disclosures may constitute investment fraud. Silver Law Group represents the interests of investors nationwide who have been the victims of investment fraud. If you invested in one of the retirement plans sold by Valic/AIG, please contact the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800)-975-4345.