When I began this blog in 2001, I was appalled by President Bush's headlong rush to an illegal war (we were not in fact under attack). As time wore on and Bush began his assault on the Constitution and any people bold enough to criticize, I believed that "the republic is endangered more by actions of our own government than by those of any terrorist." With the election of a high-minded, compassionate, intelligent man like Barack Obama, my fears have ceased.
"Honor them with peace, not war"
United for Peace
Thursday, December 28, 2006
Attorney General Announces $20 Million Settlement With The Hartford Involving Secret Kickback Allegations
May 10, 2006
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Similar articles came about in regards to Travelers. Travelers now requests each applicant to sign forms in regards to previous broker or broker related work activities.
Copyright © 2001-03 Pam Shorey
(except the specific sources credited in quotes)
Attorney General: Attorney General Announces $20 Million Settlement With The Hartford Involving Secret Kickback Allegations
Politics in the Business World: Coming Clean
Attorney General: Attorney General Announces $20 Million Settlement With The Hartford Involving Secret Kickback Allegations: "Press ReleaseAttorney General Announces $20 Million Settlement With The Hartford Involving Secret Kickback Allegations
May 10, 2006
Attorney General Richard Blumenthal today announced that The Hartford Financial Services Group, Inc. (The Hartford) will pay $20 million under an agreement with Connecticut and New York to settle allegations that it paid brokers millions of dollars in secret kickbacks in exchange for steering lucrative pension plan investment business to The Hartford.
The Hartford is one of the oldest and largest investment and insurance companies in the country, with millions of customers worldwide. The settlement will provide $16.1 million directly to the pension plans harmed by the scheme and $1.95 million in penalties each to Connecticut and New York.
From 1998 through 2004, The Hartford entered into concealed financial agreements with brokers, including Dietrich & Associates, Inc. (Dietrich), Brentwood Asset Advisors (Brentwood), Glastonbury-based USI Consulting Group, and BCG Terminal Funding.
Under these agreements, The Hartford secretly paid brokers millions of dollars in exchange for brokers steering pension plan purchases of annuities, and providing inside information on competitive bidding.
'The Hartford was at the hub of a series of secret conspiracies that enriched both the brokers and The Hartford at the expense of their customers,' Blumenthal said. 'Our evidence shows a shocking systematic scheme that betrayed their moral and legal duties.'"
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"The Hartford paid secret kickbacks to brokers who steered pension plan business and undercut the competitive bidding process - raising the pension plan's costs," Blumenthal said. "The Hartford and its co-conspirators elaborately concealed kickbacks as so-called expense reimbursement agreements - really just false fronts for the scheme. The scheme exploited pension plans - taking funds from retirement vehicles that are the bedrock of our nation's workers' livelihoods.
"There is no pleasure in uncovering wrongdoing by one of Connecticut's best respected corporate citizens. Our continuing investigation of The Hartford and others must be pursued wherever the evidence leads. The Hartford has cooperated - taking the high road - and we hope others will as well. The message is that no one in this industry - insurers or brokers, big or small - can break the law and betray their trust.
"Our reforms - stopping contingent commission agreements - will help prevent future insurance abuses. This investigation was spurred by a whistleblower and we hope others with knowledge will come forward."
Blumenthal said this settlement culminates a year-long investigation conducted jointly with the New York Attorney General's office. Blumenthal said The Hartford cooperated with the investigation.
Similar articles came about in regards to Travelers. Travelers now requests each applicant to sign forms in regards to previous broker or broker related work activities.
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Copyright © 2001-03 Pam Shorey
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