Charles F. Parisi, a California financial services executive, allegedly worked with his brother and a colleague to dupe fund board members, insurance companies and portfolio managers about Parisi's troubled past and conceal Parisi's role in a firm which managed a trust used in variable annuities, the SEC alleged last week.

Parisi, of San Diego, controlled Palladian Advisers of LaJolla, Calif. from 1992 to 1997 using another employee and his brother, Mark Parisi, as fronts to conceal Parisi's control of Palladian, according to a lawsuit which the SEC filed against Parisi in U.S. District Court in San Diego Sept. 27. Palladian served as the manager of the Palladian Trust, a trust which included five funds that served as the investment options for variable annuities offered through at least two companies, Security Life of Denver Insurance Co. of Denver, Colo. and Allmerica Financial of Worcester, Mass., according to SEC filings and executives at the two firms.

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