"Essentially, it is pay-to-play compensation to push certain products," Galvin told the AP in an interview, adding that his office has also subpoenaed other companies related to these sales. He declined to disclose the names of these companies or whether it is the insurance companies themselves. However, he did say that the
Morgan Stanley issued a statement saying it is "confident" that its annuity sales practices are "appropriate."
The subpoenas come on the heels of Galvin's earlier investigation into mutual fund sales at Morgan Stanley and a lawsuit that an investor filed last month against Morgan, accusing the firm of accepting kickbacks from insurance companies to promote a select group of variable annuities and other investments.
Ron Marron, a lawyer representing an investor who filed the complaint, said his client purchased a pair of variable annuities from
Morgan went ahead with the sales despite questionable circumstances because Hartford offered under-the-table financial incentives, Marron charged.
In addition,