The SEC Probes Valic Sales of Retirement Plans to Teachers

The U.S Securities and Exchange Commission (SEC) is investigating sales and disclosure practices at Valic, a subsidiary of American International Group, Inc. 

The company specializes in tax-qualified retirement plans, supplemental tax-deferred and after-tax investments for employees working at K-12 schools, colleges, and not-for-profit organizations.

Company May Have Rewarded Sales of Higher-Cost Products

The investigation focuses on whether incentives in Valic’s compensation structure representatives for selling higher-cost products to retirement plan participants and whether Valic discloses the payments its representatives receive on individual product sales.

Additionally, the SEC is inquiring about Valic’s arrangements with school districts. According to recent reports, the company is said to provide money to cover for school expenses and offer investment options and products to school employees. 

Additionally, the SEC is inquiring about Valic’s arrangements with school districts. According to recent reports, the company is said to provide money to cover for school expenses and offer investment options and products to school employees.

While the evaluation takes place, many high-level Valic executives have been placed on administrative leave.

Did You Lose Money With Your Retirement Plan?

Retirement plans, including 401(k), 403(k), and 457(b) plans have been under heightened scrutiny over the past several years, as multiple class action lawsuits have shed light on rampant abuses in the retirement plan sector of the financial services industry. Those abuses include excessive administrative fees and excessively costly investment options within retirement plans, which collectively have depleted millions of dollars from consumers’ retirement savings. If you believe that you were sold higher-cost products in your retirement plan or have incurred excessive fees, contact a qualified, experienced investment attorney.

Speak with an Investment Fraud Attorney

Our AV-rated* securities fraud lawyers have extensive experience litigating a broad range of cases including stockbroker misconduct. If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have a proven track record of getting results for clients.

Contact Dimond Kaplan & Rothstein Today

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