The White Law Group

MENU
  • Securities Litigation
    • Securities Fraud
    • Securities Employment
    • Common Claims
    • FAQ
  • Attorneys
  • Publications
  • Blog
    • Securities Fraud
    • Current Investigations
    • Podcasts
  • Contact Us

Call Now for a Free Consultation
(888) 637-5510

October 4, 2010 Comments (0) Blog, Securities Fraud

Securities Fraud Investigation Involving Retained Asset Accounts

The White Law Group is investigating possible securities fraud claims involving retained asset accounts.

Retained asset accounts are facing growing scrutiny, with regulators calling into question the disclosure policies of insurance companies that market and sell the products to clients.

Retained-asset accounts are products that allow insurers to profit from beneficiary death benefits by placing the funds in interest-bearing accounts. A retained-asset is considered a temporary repository of funds.  Instead of paying out a lump-sum upon the death of a policyholder, insurers keep the money in their own general fund.  By keeping the money, insurers are able to earn a higher return on the funds than they pay out in interest.

Insurers use retained asset accounts as a way to keep cash when beneficiaries of the policies do not elect a lump-sum payout of death benefits.  Beneficiaries are instead issued a “checkbook” to access their funds. Meanwhile, the insurance companies earn interest from the money in the accounts.

In July, New York Attorney General Andrew Cuomo opened a fraud investigation into retained asset accounts, with subsequent probes announced by Georgia and New York insurance departments.  The focus of Cuomo’s investigation appears to be concerning whether consumers thoroughly understand the payout options associated with retained-asset accounts. New York has thus far subpoenaed Prudential Financial, MetLife and several other insurers as part of its investigation into possible fraud in the life insurance industry.

Retained asset accounts are not backed by the Federal Deposit Insurance Corporation – a fact that creates uncertainty and added risks.

If you have information that would assist us in our investigation, please contact our Chicago, Illinois office at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.

For more information on the firm, visit https://www.whitesecuritieslaw.com.

» Andrew Cuomo, Attorney General, Boca Raton, broker fraud, Chicago, death benefit, Federal Deposit Insurance Corporation, FINRA, Florida, fraud investigation, Illinois, investment losses, investor protection, lump sum, MetLife, NASD, New York, Prudential Financial, retained asset account fraud, retained asset account losses, retained asset accounts, SEC, Securities Attorney, Securities Lawyer, stock fraud

» Blog, Securities Fraud » Securities Fraud Investigation Involving Retained Asset Accounts

Related Posts

  • Pruco Securities, Inc. to pay $18 Million for Overcharges, featured by top securities fraud attorneys, The White Law Group

    Pruco Securities to pay $18 Million for Overcharges

  • Voya Financial Advisors Inc. to pay $23 Million for Overcharges, featured by top securities fraud attorneys, The White Law Group

    Voya Financial Advisors Inc. to pay $23 Million...

  • Christopher Hibbard, Former Merrill Lynch Advisor Sentenced to 8 Years in Prison, featured by top securities fraud attorneys, The White Law Group

    Christopher Hibbard, Former Merrill Lynch Advisor Sentenced to...

  • 3 Cetera Firms to pay $1 Million for Supervisory Issues, featured by top securities fraud attorneys, The White Law Group

    3 Cetera Firms to pay $1 Million for...

Leave a Reply Cancel reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

THE WHITE LAW GROUP

Investment Losses?

Recent Posts

  • Steadfast Apartment REIT Lowers Distribution Rate, featured by top securities fraud attorneys, The White Law Group

    Steadfast Apartment REIT Lowers Distribution Rate

    January 15, 2021
  • Investor Alert: The Parking REIT to Sell Majority Stake, featured by top securities fraud attorneys, The White Law Group

    Investor Alert: The Parking REIT to Sell Majority Stake

    January 15, 2021
  • FINRA Reportedly Bars Steven Luftschein (Steven Lerner) after Allegations of Churning & Unauthorized Trades, featured by top securities fraud attorneys, The White Law Group

    FINRA Reportedly Bars Steven Luftschein (Steven Lerner) after Allegations of...

    January 14, 2021
  • Former LPL Advisor Michael Tavel Suspended from Securities Industry, featured by top securities fraud attorneys, The White Law Group

    Former LPL Advisor Michael Tavel Suspended from Securities Industry

    January 13, 2021
(312) 238-9650 | Fax (312) 238-8950 | (888) 637-5510 | 125 S. Wacker Drive, Suite 300, Chicago, Illinois 60606 | 725 Cool Springs Blvd., Suite 600, Franklin, Tennessee 37067

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. © 2015 by The White Law Group, LLC All rights reserved.

© 2021 The White Law Group | Powered by Wordpress. Designed by Themnific