West Virginia farmers claim MassMutual and their accountants engaged in fraudulent conduct involving 412(i) plan MassMutual has recently been sued in a 412(i) case in West Virginia. According to published reports, an elderly farming family in West Virginia has filed suit against MassMutual, several of it’s agents, and a West Virginia accounting firm.
In their suit, they claim that the accountants and MassMutual agents set up a 412(i) pension plan that included policies and annuities that generated hundreds of thousands dollars in commissions to the MassMutual agents and their accountants (who did not disclose that they would benefit as well). In their suit, the plaintiffs claim they were not qualified for the plan, that the agents and accountants allegedly falsified information, forged signatures on insurance and annuity documents, and fraudulently amended tax returns.
Unfortunately, this type of conduct is not uncommon. I represented a client in a single person ESOP who made similar allegations against another insurance company and broker and I am currently representing a physician with a 412(i) plan who is making similar allegations.
insurance and the insurance industry first and foremost to understand the appeal of these transactions. You’ve also got to understand tax law and how it relates to 412(i) and 419 plans as tax code sections. Finally, you need to have some knowledge of the legal system. You don’t find a lot of people who have got those three skills all in one person or in one firm.
I was exposed to these plans from the very beginning and understand the insurance, the tax and the legal issues. Consequently, that’s why I get contacted from people all over the country that are at one stage or another in these plans who are trying to get out, get their tax issues taken care of and get their money paid back. I also act as an expert witness on about a dozen different ongoing cases to get these plans and these issues settled – and we’ve had great success with that
West Virginia farmers claim MassMutual and their accountants engaged in fraudulent conduct involving 412(i) plan
ReplyDeleteMassMutual has recently been sued in a 412(i) case in West Virginia. According to published reports, an elderly farming family in West Virginia has filed suit against MassMutual, several of it’s agents, and a West Virginia accounting firm.
In their suit, they claim that the accountants and MassMutual agents set up a 412(i) pension plan that included policies and annuities that generated hundreds of thousands dollars in commissions to the MassMutual agents and their accountants (who did not disclose that they would benefit as well). In their suit, the plaintiffs claim they were not qualified for the plan, that the agents and accountants allegedly falsified information, forged signatures on insurance and annuity documents, and fraudulently amended tax returns.
Unfortunately, this type of conduct is not uncommon. I represented a client in a single person ESOP who made similar allegations against another insurance company and broker and I am currently representing a physician with a 412(i) plan who is making similar allegations.
insurance and the insurance industry first and foremost to understand the appeal of these transactions. You’ve also got to understand tax law and how it relates to 412(i) and 419 plans as tax code sections. Finally, you need to have some knowledge of the legal system. You don’t find a lot of people who have got those three skills all in one person or in one firm.
ReplyDeleteI was exposed to these plans from the very beginning and understand the insurance, the tax and the legal issues. Consequently, that’s why I get contacted from people all over the country that are at one stage or another in these plans who are trying to get out, get their tax issues taken care of and get their money paid back. I also act as an expert witness on about a dozen different ongoing cases to get these plans and these issues settled – and we’ve had great success with that