On March 27, a complaint was filed with the Financial Industry Regulatory Authority Office of Hearing Officers against Birli and Chapin regarding the State University of New York retirement program. According to the complaint, Birli and Chapin recommended their customers switch MetLife variable Annuities with new ones held outside the retirement plan in MetLife IRA accounts.

Allegedly, Birli and Chapin circumvented their firm’s general prohibition of direct annuities exchange by recommending to their customers that they surrender their annuities to purchase another product available within the retirement program, wait 90 days, and then sell the second product in order to purchase the MetLife IRA annuity.

According to stock fraud lawyers, the new annuities were unsuitable because their liquidity was affected by the seven-year surrender schedules they came with. Furthermore, investors lost accrued death benefits above and beyond their contract value. Allegedly, Birli and Chapin each received commissions of 7.15 percent through the switch.

Variable annuities are a type of insurance product. With this product, the investor pays into an account now in exchange for the guarantee of a future payout. The investment is tied to a stock index return, making it variable. According to securities fraud attorneys, firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.

If you suffered significant losses as a result of an unsuitable recommendation regarding variable annuities, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stockbroker claims lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

Hutcheson was a trustee and fiduciary to three multiple employer plans, according to the Boise U.S. Attorney’s Office. These plans were the National Retirement Security Plan 401(k), the Retirement Security Plan & Trust and the G Fiduciary Retirement Income Security Plan. According to the allegations against Hutcheson, he directed the G Fiduciary Plan’s record keeper to send $2,031,688 from the plan’s account via 12 wire transfers in 2010. The plan’s account was kept at Charles Schwab & Co. Inc., and the accounts that received the funds were for Hutcheson’s personal benefit or under his control.

Furthermore, in 2010 Green Valley Holdings was set up by Hutcheson, an entity that was used to acquire a ski lodge and golf course at Idaho’s Tamarack Resort. According to the complaint, he also allegedly funneled plan assets from Retirement Security Plan & Trust to help purchase an interest in the resort, amounting to $3 million.

Hutcheson has pleaded not guilty, but federal authorities are seeking forfeitures from him amounting to $5.3 million. In addition, Hutcheson could receive five years in prison for each count of employee pension benefit plan theft, and 20 years in prison for each count of wire fraud.

According to securities fraud attorneys, a firm may still be held responsible for their employee’s actions if it can be proved that they were negligent in the supervision of their brokers or advisers, even if the employee was conducting business without their knowledge. Therefore, victims of Hutcheson’s fraud may be able to recover losses with the help of an investment fraud lawyer, through securities arbitration against his employer.

If you suffered losses as a result of investing with Hutcheson, contact a securities fraud attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

Part of the problem could be age, and the fact that many young employees aren’t yet looking at their retirement seriously. According to a recent study, 43 percent of young workers age 20-29 don’t put enough money into their 401(k) to get their employers’ full match. According to FINRA’s press release on the Investor Alert, “Millions of workers, especially younger and lower-income workers who need it most, are leaving money — free money — on the table.”

Another factor lowering employee 401(k) contribution may be the state of the economy. With less money to go around, it’s often hard to put away for the future. However, hard economic times should be incentive to put away more to protect your retirement. According to FINRA Vice President of Investor Education Gerri Walsh, “Even in tough economic times, all employees still need to prepare for their retirement. Taking full advantage of a company’s 401(k) match is a no-cost way for workers to boost their retirement savings.”

The Investor Alert also contains valuable information about the value and tax benefits of corporate 401(k) matching, as well as “key points to remember.” FINRA’s Investor Alerts are designed to help the public get the most from their investments and protect themselves against broker misconduct. For more information, read the full Investor Alert at FINRA.org.