More Allegations Revealed Against MassMutual's Former Chief

June 22, 2005 (PLANSPONSOR) - MassMutual has revealed more allegations from its investigation of former Chairman and Chief Executive Robert O'Connell.

In addition to the unauthorized trades for a “shadow” 401(k) account as reported earlier, (see   Report: MassMutual Chief Charges Included Retirement Account Improprieties),the Boston Globe reports accusations that O’Connell bought a company-built condominium in Florida at below market prices and allegedlycost the company ”unwarranted and excessive” severance payments ”in connection with personally motivated and retaliatory terminations” of certain employees, according to O’Connell’s termination letter filed in court by the company.

The letter accuses him of interfering with an investigation by the company of his son, Jared, and destroying a reprimand from his personnel file.

O’Connell plans to state his case to MassMutual’s board Thursday to not also be removed from the board of directors.   His spokesperson, Joseph Grillo, stated, “Throughout his tenure, he acted in the best interests of the company and its policyholders consistent with the company’s policies, guidelines, and board directives,” the Globe reported.  

According to the Globe, MassMutual has hired Raymond Maria, an accountant and former FBI agent who now conducts corporate and union fraud and racketeering investigations, to look into complaints against O’Connell.   Two reports written by Maria have not yet been made public.

-Rebecca Moore