SunLife Insurance Company (SunLife) and AIG Life Ins. Co. (NYSE:AIG), and other insurance companies have been engaged in the offer and sale of variable annuities and variable life insurance policies that are really investments in highly speculative hedge funds and private equity funds. These hedge funds and private equity funds are known as "insurance-dedicated funds." The manner in which these insurance-dedicated funds have been sold could be viewed as a false and misleading sales practice. Many investors may have been misled as to the relative safety of their investment when they bought what appeared to be a safe insurance type product that had been fully vetted by an insurance company.
Stockbrokers who offered and sold the SunLife and AIG insurance-dedicated funds were under a duty to only recommend these highly speculative funds to investors who were suitable to make the investment in light of their investment objectives and financial condition. Retail investors who had an objective of seeking an insurance type product would not be suitable investors in highly speculative hedge funds or private equity funds. The fact that these products were sponsored by insurance companies does not mean they were safe and suitable investments. We would not be surprised in learning that many investors were misled by their stockbrokers into purchasing insurance-dedicated funds.
Similarly, we would not be surprised to learn that SunLife, AIG and other insurance companies failed to do their due diligence in investigating the funds that were included in their variable annuities and variable insurance policies. Investors purchasing insurance policies are typically lulled into believing that the insurance company has done its job and is only offering safe products to investors with low risk tolerance. Many investors would be shocked to learn that insurance companies have failed to do their job when it comes to insurance-dedicated funds.
One example of an insurance dedicated fund disaster that was held in variable annuity contracts and variable life insurance policies purchased through SunLife, AIG and other insurance companies was the Strategic Stable Return Fund L. P. (SSR Fund). This was supposed to be a low risk capital preservation fund. However the SSR Fund lost over $100 million of investors' capital as a result of an investment in an affiliate run by an individual who was charged by the SEC with fraud. The SSR Fund also made other investments in feeder funds that invested in a Ponzi scheme.
Have you suffered losses resulting from an investment in a variable annuity contract or variable life insurance policy invested in an insurance-dedicated fund? Have you suffered losses as a result of an investment in a SunLife, AIG or other insurance company product that invested in the SSR Fund? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against SunLife, AIG and other insurance company affiliated stockbrokerage firms who fraudulently offered and sold the fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.