Compliance August 13, 2009

AXA Advisors Fined for Fraudulent Rollovers

The Securities and Exchange Commission (SEC) fined AXA Advisors $50,000 related to retirement-fund fraud by a registered representative.

Reported by

The SEC said in an administrative order Tuesday that Gordon R. Moore, a former registered representative at AXA Advisors, fraudulently induced investors, the majority of whom were current teachers in Colorado public schools, to roll over their investments from their Colorado Public Employees’ Association (PERA) 401(k) accounts into 403(b) products offered by AXA Advisors. However, the investors were not eligible to make the rollovers because they had not terminated their PERA-eligible employment or reached the age of 59 and 1/2.

Moore worked in the Longmont, Colorado, office from 2001 to 2007. In 2008, Moore pled guilty to securities fraud, theft, and computer crime and was sentenced to two years probation and ordered to pay criminal restitution in an amount based on the commissions he earned from his fraudulent activities. The SEC settled with Moore, barring him from association with any broker, dealer, or investment adviser.

The SEC said AXA Advisors failed to reasonably supervise Moore, who completed more than 130 fraudulent rollovers. However, the SEC also said AXA Advisors promptly made significant improvements to its supervisory system, ultimately resulting in no monetary harm incurred by the participants.

AXA Advisors settled with the SEC without admitting or denying the findings.

In Practice August 13, 2009

Can Sex Help You Sell?

Add this to the list of studies about how to improve job performance: Increased sexual activity might lead to an improvement in problem-solving, confidence, and teamwork.

Reported by

Helen Fisher, chief scientific adviser at online dating site Chemistry.com, said success in the bedroom could lead to success in the boardroom.

“In addition to being great exercise and a stress reliever, sex triggers the release of a number of valuable brain chemicals,” said Fisher. “From improved problem-solving as a result of heightened dopamine levels, to enhanced teamwork skills due to a flood of oxytocin—there are a number of positive benefits which can improve performance in the workplace.”

Fisher said it’s likely that those who have regular sex are more creative at work, resulting in better problem solving. That is because the dopamine rush one gets from sex is associated with improved creativity.

Furthermore, sex triggers chemicals that generate feelings of trust, attachment, and calm. When translated in the workplace, those who have regular sex are likely to feel more cooperative and agreeable.

And then of course there’s testosterone, which gives both men and women feelings of competence, self-confidence, and well-being. In higher doses it can also trigger feelings of competitiveness, which helps boost productivity in the office, according to Fisher.

Fisher’s research focused on a sample of 40,000 people on Chemistry.com. Fifty-six percent were female and the average age of participants was 37 years.

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