Guggenheim Partners accused of fraud and racketeering by annuity buyers
According to Bloomberg.com, Guggenheim Partners LLC, Security Benefit Life Insurance Co., Guggenheim Life and Annuity Co. and Equitrust Life Insurance Co. were accused of fraud and racketeering in a lawsuit by annuity buyers filed in federal court yesterday.
In the complaint, plaintiffs Clarice Whitmore and Helga Maria Schulzki claim asset managers raided insurers’ cash reserves, threatening the security of the annuities they sold.
The women allege that Guggenheim acquired insurance companies and used them to sell annuity products that appeared to be safe while “funneling cash” to Guggenheim and associates. They also stated that the companies, “Engaged in a single racketeering enterprise that overcharged annuity purchasers.”
The plaintiffs are seeking class-action status and representation to anyone who bought an annuity from Security Benefit Life Insurance Co., Guggenheim Life and Annuity Co. or Equitrust Life Insurance Co. since
Jan. 1, 2010.
Source:
http://www.bloomberg.com/news/2014-02-12/guggenheim-partners-accused-in-lawsuit-of-racketeering.html