What are the Other Types of Variable Annuity Fraud?
Among the abusive and improper sales practices allegedly engaged in by sellers of variable annuities are the following: • Churning and Excessive Fees – The unnecessary replacement of old variable annuities with new ones to create unnecessary commission payments and surrender fees • False Disclosures – Failure to disclose investment risks or misrepresenting tax deferral benefits that can be achieved through variable annuity investments. Falsely touting variable annuity products of one company over identical products of another in order to generate commissions and surrender fees • Preferential and Unfair Customer Treatment – Side agreements between the seller and certain large or favored investors to allow “market-timing” and “after hours trading” in which favored customers are allowed to rapidly buy and sell variable annuities, harming long-term investors who are not allowed to participate in the practice by diluting the profits they would otherwise receive and concentrating or increasi
