Unlawful Variable Annuities

INVESTIGATION OF UNLAWFUL VARIABLE
ANNUITIES SALES PRACTICES

If you feel you have been harmed by unlawful variable annuities sales practices, contact a lawyer today for a free consultation.

What are Variable Annuities?

Variable annuities are insurance contracts providing purchasers with future payments that fluctuate according to the performance of mutual funds and other managed funds into which a customer's money is invested. Variable annuities are sold by insurance companies and brokerage companies for commissions. According to the New York Times and other publications, various state and federal regulators are investigating the trading practices of the variable annuity industry.

On May 27, 2003, the NASD issued an Investor Alert with regard to the sales of variable annuities. It said, in part: "The marketing efforts used by some variable annuity sellers deserve scrutiny - especially when seniors are the targeted investors. Sales pitches for these products might attempt to scare or confuse investors. One scare tactic used with seniors is to claim that a variable annuity will protect them from lawsuits or seizures of their assets. Many such claims are not based on facts, but nevertheless help land a sale."

What are Questionable Variable Annuity Sales Practices?
Among the abusive and improper sales practices allegedly engaged in by sellers of variable annuities are the following:

• Churning and Excessive Fees. The unnecessary replacement of old variable annuities with new ones to create unnecessary commission payments and surrender fees.


• False Disclosures. Failure to disclose investment risks or misrepresenting tax deferral benefits that can be achieved through variable annuity investments. Falsely touting variable annuity products of one company over identical products of another in order to generate commissions and surrender fees.


• Preferential and Unfair Customer Treatment. Side agreements between the seller and certain large or favored investors to allow market-timing and after hours trading in which favored customers are allowed to rapidly buy and sell variable annuities, harming long-term investors who are not allowed to participate in the practice by diluting the profits they would otherwise receive and concentrating or increasing their losses.


• Unsuitable Sales Into Tax-Deferred Accounts. The unsuitable investment or transfer of funds in tax-deferred accounts such as IRAs, Keoughs, Rollovers, 401(k)s, profit sharing, and other qualified retirement plans, subjecting such investors to higher and additional classes of fees, as well as unnecessary termination costs and restrictions, and lower overall investment returns.

What are the Legal Rights of Investors?

You may have been harmed if you invested in a variable annuity. The investigation into abusive practices in variable annuities potentially implicates the following leading sellers of variable annuity products: Skandia, Conseco Variable Insurance Company, Hartford Life Insurance, John Hancock, Lincoln National, Equitable Life, AIG/Sun America, Prudential, MetLife, ING, Nationwide, ManuLife, Alger, Invesco, Janus, Fidelity, Nations Bank, Oppenheimer, Scudder, Travelers, Credit Suisse, Morgan Stanley and/or Putnam. However, other companies may be implicated as well.

Contact an experienced investments lawyer today for a free consultation that will help you understand your rights in a lawsuit.
This is the first critical step to help you obtain compensation. Please note that you are not considered a client until you have signed a retainer agreement and we have accepted the case.

Please contact us for a free evaluation of your case.

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