New York Attorney General Eliot Spitzer on Thursday sued Putnam Investments’ parent company, Marsh & McLennan, for allegedly taking payoffs from insurers.

The suit, filed in New York Supreme Court, says that instead of finding the best prices for its customers, the insurance brokerage steered clients toward the insurance firms that would kick back some money its way. Spitzer named four insurance companies – The Hartford, Ace Ltd., AIG and Munich-American Risk Partners – that apparently worked in cahoots with Marsh & McLennan.

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