Investigations

Insurance-Dedicated Funds Sold To Investors Through SunLife, AIG And Other Insurance Companies

Zamansky 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. SunLife and AIG offered investors the opportunity to invest in hedge funds and private equity funds through variable annuity contracts and other insurance policies. The hedge and private equity funds available for investment through these insurance policies are called “insurance-dedicated funds”.

This investigation concerns unsuitable sales to unsophisticated or inexperienced investors of insurance policies by SunLife and AIG which are, in turn, invested in insurance- dedicated funds. Many retail investors are ill-suited to bear the risks of investing in hedge funds or private equity funds, and may be misled into believing that the investment is suitable or safe due to the fact that the insurance-dedicated fund is on the platform of SunLife, AIG or another large insurance company. Investors also may not be receiving full or truthful risk disclosure to make their own suitability determination before they invest in such an arrangement.

This investigation also concerns the due diligence or lack of due diligence performed by SunLife, AIG or other insurance company on insurance-dedicated funds. Investors have reasonable expectations that the insurance-dedicated funds are screened and vetted before placed on the platform for sale by SunLife, AIG or other company. The manner in which the insurance-dedicated funds are sold may also mislead investors as to the degree of due diligence performed on insurance dedicated funds.

There have been several notable failures by insurance-dedicated hedge and private equity funds. For example, the Strategic Stable Return (ID) Fund L.P. (”SSR Fund”) which was supposed to be a low risk, capital preservation fund has suffered a near total loss of $100 million of investor funds. The SSR Fund’s largest investment was in an affiliated fund run by a manager charged by the SEC with fraud. The SSR Fund additionally invested in three feeder funds that invested in the Tom Petters’ Ponzi scheme. Notwithstanding, the SSR Fund was an insurance-dedicated fund held entirely by owners of insurance contracts or policies purchased through SunLife, AIG or other company.

If you are or were an investor who suffered a loss from investing in an insurance-dedicated fund through an insurance policy issued by SunLife, AIG or other company, and wish to discuss your rights, please contact us. Please contact Jake Zamansky at (212) 742-1414, or by email at jake@zamansky.com.

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