Compliance January 14, 2008

Former CO Adviser Admits $1.7M Scheme Against Teachers

A former AXA Equitable Life Insurance investment adviser has pled guilty to stealing $1.7 million from Colorado public school teachers.
Reported by

Gordon Robert Moore, 31, entered the guilty plea in Colorado District Court to charges of theft, computer crime, and securities fraud. He faces up to 30 years when he is sentenced February 26.

Colorado Attorney General John Suthers charged that Moore contacted 141 Colorado public school teachers from 11 school districts and asked them to transfer 401(k) assets with the state’s Public Employees Retirement Association (PERA) into different AXA accounts.

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According to the charges, the rollovers violated Internal Revenue Service rules on when participants are eligible to take distributions. Moore allegedly advised the educators to execute the rollovers anyway.

Moore was also charged with forging participants’ signatures on documents stating that the employees had been terminated.

News reports said the probe into the adviser’s activities began after PERA officials learned that improper distributions had taken place. PERA officials said they are cooperating with AXA in a bid to recover the $1.7 million. AXA said that Moore was terminated in July 2007 as a result of the Attorney General’s investigation.

The indictment can be found here.

Deals & People January 14, 2008

AXA Introduces New Unit to Provide Retirement Plan Solutions for Large Companies

AXA Equitable Life Insurance Co. has launched a new distribution channel focused on providing retirement plan strategies and solutions for Fortune 1000 corporations and their employees.
Reported by

Corporate Markets provides employers with resources for offering education, ongoing support, and guaranteed income solutions to retirement plan participants as transition to the distribution phase at retirement, according to a company announcement. Corporate Markets is run by Executive Vice President Bill McDermott, who joined AXA Equitable in September after spending 11 years with Fidelity Investments.

“Individuals are now preparing for retirement at an earlier age. With defined benefit plans becoming rare, the uncertainty about the future of Social Security, and increasing life expectancies accompanied by rising medical costs, people at all stages of the retirement planning process are concerned about their long term financial security,” said McDermott, in the announcement. “Individuals are looking for guarantees – at each stage of the process. They also want education, service, and ongoing support, and they want it through their employers – that’s what our Corporate Markets business provides.”

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Guarantees are based on the claims-paying ability of AXA Equitable Life Insurance Company, NY, NY, and securities are offered through AXA Advisors, LLC.

More information is at www.axa-equitable.com.

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