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Class Claims MetLife Did Them Wrong
Corporate Governance |
2010/10/04 03:07
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MetLife Insurance defrauded investors, including elderly people, by guaranteeing them 9 to 12 to percent annual returns on real estate investments, a class action claims in Superior Court. Also sued were New England Life Insurance, two of its wholly owned subsidiaries, and Tony Russon and Russon Financial Services, of Woodland, Calif., who was, or held himself out as, a MetLife regional manager.
Named plaintiffs Lawrence Cantor and Larry Stilley say they invested $1.95 million with "an authorized 'agent' with Met Life," who used it to enter contracts with nonparty Diversified Lending Group (DLG). The "funds invested in DLG contracts were ultimately not repaid," the men say.
According to the complaint, the SEC sued DLG and Bruce Friedman in Federal Court, accusing them of selling $216 million in securities to investors, many of them elderly. The SEC says the defendants diverted "a substantial amount" of the money to Friedman's businesses unrelated to real estate or mortgage lending, and that Friedman snitched "a minimum of $17 million to support his lavish lifestyle, including purchases of a luxury home, cars, vacations, jewelry and designer clothing and accessories," and that he grabbed $275,000 "for the personal use of his girlfriend."
Friedman consented to judgment, then fled to France, where he was arrested and is awaiting extradition, according to the complaint. |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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