X hits on this document

PDF document

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA - page 10 / 18

34 views

0 shares

0 downloads

0 comments

10 / 18

from templates the Defendants created, and bear the names of Merrill Lynch, Raymond James,

and Lehman Brothers.

34.

The legend on top of most of the certificates state “Pension Fund of America,” but

recently issued certificates state “PFA Assurance Group, Ltd.” The certificates contain minimal

information, setting forth the amount invested, the mutual fund selection and the plan’s insurance

company.

35.

For investors that selected Lehman, Defendants sent certificates containing the

language “Lehman Brothers as Trustee” and an official-looking Lehman stamp which is stamped

over the signature of an “Authorized Official” (presumably from Lehman). The certificates also

include similar seals next to the Authorized Official signature referring to Merrill Lynch and

Raymond

James

as

“custodian.”

The

Defendants

currently

send

certificates

to

investors

selecting HSBC which state “HSBC Bank, USA as trustee.” All of these stamps, signatures, and

certificates are false because no such affiliation exists between these institutions and any of the

Defendants.

  • 3.

    Omissions about Mutual Fund Fees

  • 36.

    The Defendants also fail to disclose to investors that the banks and broker-dealers

charge undisclosed front-end load fees – a form of sales-agent commission – of up to 6.5 percent

per mutual fund. They also have failed to disclose to investors that they had a choice in

obtaining mutual fund shares at significantly lower costs (many at “no load”) compared to the

high-commission mutual fund shares that the Defendants purchased on investors’ behalf.

  • 4.

    Misrepresentations about Life Insurance Policies

  • 37.

    The Defendants also tout term life-insurance policies as a component of their

plans. Regardless of what insurance they purchase for investors or how they label the insurance

10

Document info
Document views34
Page views34
Page last viewedMon Dec 05 04:45:16 UTC 2016
Pages18
Paragraphs533
Words4354

Comments