A unit of finance and insurance corporation American International Group has agreed to a $20 million settlement with the Securities and Exchange Commission regarding sales practices in affiliation with Florida teachers’ unions.
The parent company of Valic Financial Advisors, Inc. paid hundreds of thousands of dollars to an entity owned by affiliates of the Florida Education Association, who then promoted their services, unbeknownst to the Florida teachers who used their services. Through the advertising, teachers signed up for annuity products and became clients of its investment-advisory business. Valic was paid annual fees to manage their assets.
