>Under the judgement, Allen cannot serve as a fiduciary or service provider for any employee benefit plan governed by federal employee benefits law, according to the DoL.
>Allen and AIM invested money for multiple pension funds, and Allen himself has already settled with federal regulators over charges that he made unauthorized trades for clients (See Advanced Investment Management Settles Pension Loss Claims ). The pension funds involved included the Allegheny County Retirement Board and the Pennsylvania State Employees Retirement System. Other executives with the firm are currently being investigated over similar charges (See SEC Pursues Advanced Investment Management Executives ).
“Investment guidelines specify the level of risk a plan is willing to bear and are created to ensure that sufficient funds are available to pay workers’ benefits,” said Ann Combs, assistant secretary of labor for employee benefit security, in a press release. “Investment managers cannot ignore those guidelines.”