Hedge funds are risky investments that are not suitable for retirees, regardless that they are called insurance dedicated funds or held through insurance policies, according to Jake Zamansky.
New York, New York (PRWEB) March 18, 2013
Zamansky & Associates LLC announces that it is investigating the sales of “insurance-dedicated funds” to investors through Sunlife Insurance Company (“SunLife”) and AIG Life Insurance Company (“AIG”), and other insurance companies. Recently, Zamansky filed a FINRA arbitration on behalf of a retired 70- year-old investor to recover losses suffered from investments in “insurance dedicated” funds held in an AIG annuity. The case is FINRA No. 2012-01720.
The Statement of Claim alleges that investing in “insurance dedicated funds” was unsuitable and too risky for this retiree, and that AIG allegedly failed to perform proper and sufficient due diligence on the insurance dedicated hedge funds. The Statement of Claim alleges that one of the funds, the Strategic Stable Return (ID) Fund L.P. (“SSR Fund”) which was supposed to be a low risk, capital preservation fund but that it has suffered a near total loss of $100 million. The Statement of Claim further alleges that the SSR Fund’s largest investment was in an affiliated fund run by a manager charged by the SEC with fraud, and that it also invested in three feeder funds that invested in the Tom Petters’ Ponzi scheme.
This investigation concerns unsuitable sales of insurance dedicated hedge funds to investors through policies issued by Sun Life and AIG. Hedge funds are risky investments that are not suitable for retirees, regardless that they are called insurance dedicated funds or held through insurance policies, according to Jake Zamansky. Any investment that lacks liquidity is also inappropriate in substantial size for a retiree or conservative investor, he says.
What Investors Can Do
If you would like to have your brokerage accounts reviewed or discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414