MetLife will pay $13.5M to end probe of 'improper' broker payments

MetLife Inc., the biggest U.S. life insurer, agreed to pay the government $13.5 million to resolve an investigation into “improper” payments to a San Diego-based broker that sold the company's coverage.
JUL 06, 2010
MetLife Inc., the biggest U.S. life insurer, agreed to pay the government $13.5 million to resolve an investigation into “improper” payments to a San Diego-based broker that sold the company's coverage. “MetLife made millions of dollars in improper payments to obtain the business of the brokerage firm's clients,” the Department of Justice said in a statement today. “These hidden fees were, in turn, generally included in the rates charged by MetLife” to the insurance customer. MetLife failed to report the payments as required by the Employee Retirement Income Security Act, U.S. Attorney for the Southern District of California Karen Hewitt said in the statement. The payments helped the insurer, led by Chief Executive Officer Robert Henrikson, bid for business with “major corporate clients,” the department said. “This settlement relates to contingent compensation and other payments made to a particular broker more than 5 years ago,” Christopher Breslin, a spokesman for New York-based MetLife, said in an e-mailed statement. “We are pleased to put the matter behind us.” MetLife cooperated in the probe and will continue help government officials as the investigation continues, the Department of Justice said. The insurance broker wasn't named in the statement.

Latest News

Vistria takes majority stake in Curi Capital in fresh RIA deal
Vistria takes majority stake in Curi Capital in fresh RIA deal

Chicago-based Curi Capital gets new majority owner as $14 billion RIA eyes acquisitions and expanded family office services

WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem
WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem

Partnership pairs organic lead detection with paid ad targeting to help end "spray-and-pray" marketing for growth-seeking advisory firms.

LPL taps Wells Fargo vet as new chief technology and information officer
LPL taps Wells Fargo vet as new chief technology and information officer

Jonathan Lewis joins the wealth management giant as it proceeds with a $2 billion AI and technology push for advisors.

LPL Financial lands $1.6B Conte Wealth Advisors from Cambridge
LPL Financial lands $1.6B Conte Wealth Advisors from Cambridge

A third-generation Pennsylvania firm with 24 advisors and $1.6 billion in client assets has left Cambridge Investment Research.

Confluence Financial Partners secures minority stake from PE firm
Confluence Financial Partners secures minority stake from PE firm

Fast-growing $7.6 billion Pittsburgh-based RIA secures growth capital but retains full management control.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income