General American Life Insurance, a division of MetLife, has settled with the Securities and Exchange Commission for $3.3 million, on charges it failed to prevent late trading of mutual funds in one of its variable insurance products.

In addition, former senior vice president William Thater is paying $163,000 on charges he allowed a wealthy client to place the 79 late trades in 2002.

“By permitting a wealthy family to late trade, William Thater elevated the interests of a few select individuals over other investors,” said Linda Chatman Thomsen, Director of the Commission’s division of enforcement. “Whether it’s late trading of mutual funds directly or those that are part of variable insurance products, the Commission will continue to hold individuals and entities accountable for wrongful practices that unlawfully favor some investors over others.”

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