DealFlow Media’s attempt to portray as irony that The Hartford Financial Services Group is included on the Ethisphere Institute’s second annual "World’s Most Ethical Companies" list, despite allegations of unethical practices that the company has faced in its structured settlements business, ends shambolically with the implication that the right thing to do for Hartford would have been to pay illegal kickbacks of "commissions to annuitants" .
"The Hartford is among the companies honored this year because they have developed impressive and meaningful ethical business practices, making them true standouts within their industries," Alexander Brigham, executive director of Ethisphere Institute, was quoted to have said in a statement. Ethisphere cited Hartford’s company-wide effort in recent years to build a stronger, more cohesive ethics and compliance program for its 31,000 employees.
The Hartford is facing a class action lawsuit where it is accused of using "approved lists" of structured settlement brokers and retaining a portion of commissions that DealFlow states "should have gone to either the structured settlement brokers or back to annuitants". The case of Spencer, et al, v. Hartford Financial Services Group has more than 100 plaintiffs and is pending before the U.S. District Court in Connecticut.
Comments:
- Notwithstanding the merits of Spencer,et al, v. Hartford Financial Services Group, rebating of commissions to annuitants is illegal in most states. Read your state insurance statutes!
- Having read the complaint and amended complaint, I’m not sure DealFlow has the thrust of the suit correct.
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