Manulife Shareholders Threaten Class-Action Lawsuit

by LAS

The shareholders of Manulife Financial have proposed a class-action lawsuit against the executives of the firm. They charge that the execs made “false and misleading statements” about the company's risk management ability. The shareholders equate this with violating federal securities laws.

The proposal was filed with the US District Court for the Southern District of New York. Manulife has responded by saying that its financial disclosure met all legal requirements and that these issues have nothing to do with policyholders or company products.

The Canadian regulators responded first, with the Ontario Securities Commissioner issuing a statement in June. In that response, Canada's preliminary conclusion was that the company did not meet its obligation to disclose regarding market risk in its variable annuity products and segregated funds.

Geez, why is it so clear to the Canadians that Manulife was playing fast and loose with the law? Will there be any justice for the American shareholders? And why is it so difficult for Manulife to do right in the first place?

Ohio Advisors Busted by SEC for Inflating Fees

The SEC charged two Ohio-based investment advisors with fees-related fraud. The two advisors, Robert Pinkas and Tab Keplinger, of Brantley Capital Management (which was also charged), with overstating the value of the investment portfolio so they could charge higher fees.
Two failing private companies unfortunately made up more than half of the investment portfolio of BCM, an investment company based in New York.
The investment period in question was from 2002 to 2005. Pinkas was CEO of both Brantley and BCM. Keplinger was the part-time CFO of both companies.
Pinkas has engaged an attorney to fight the charges, while Keplinger has settled the charges without admitting or denying the allegations. He consented to a fine with a five-year ban on serving as an officer or director of a public company.

Ohio broker barred after stealing sisters' inheritance

Richard Wood, an agent in Miamisburg, Ohio who was with American General Securities Inc., promised to invest two sisters' money but used the funds for himself.
The sisters were beneficiaries of an aunt who had been a client of Wood. Wood provided both sisters with a false account number for a fake brokerage account. He was eventually found out, and forced to repay one of the sisters. The firm repaid the other sister.
The Financial Industry Regulatory Authority (FINRA) barred Wood in an agreement in which Wood did not have to admit or deny the allegations.
Lucky for the sisters, they have their money back.