MetLife Units Fined for Trading & Email Violations
The NASD fined MetLife’s securities subsidiaries $5 million for their role a scandal over late-trading in mutual funds. Included were MetLife Securities, New England Securities and Walnut Street Securities. Late-trading involves buying and selling mutual fund shares after the market closes at prices set on the close, giving traders the advantage of knowing events and after-hours trading prices on shares of stock owned by the funds.
MetLife Defrauds Georgia Sheriff’s Department
Metropolitan Life Insurance Co. (MetLife) paid a $250,000 fine and agreed to a cease-and-desist order to settle allegations it failed to supervise one of its agents. A MetLife agent was charged by the SEC with defrauding the Fulton County Sheriff’s Office. The SEC found that the MetLife agent sent bogus account statements to the Sheriff’s Office. The SEC also found that MetLife hired the agent despite repeated violations and ongoing compliance concerns, and that MetLife permitted the representative to work at an offsite location, without a supervisor present.
MetLife was charged with failing to supervise the agent. Metropolitan Life Insurance Co. paid a $250,000 fine.