{"id":6371,"date":"2018-08-28T00:00:23","date_gmt":"2018-08-28T00:00:23","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6371"},"modified":"2018-08-28T00:00:23","modified_gmt":"2018-08-28T00:00:23","slug":"transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/","title":{"rendered":"Transamerica Entities to Pay $97M to Investors Over Flawed Investment Models"},"content":{"rendered":"<p>\t\t\t\tFour Transamerica entities have settled US Securities and Exchange Charges accusing them of <a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/brokerage-firm-misconduct\/\">misconduct<\/a> involving investment models that were faulty. Collectively, the entities, AEGON USA Investment Management LLC (AUIM), its affiliated brokerage firm Transamerica Capital Inc., as well as its affiliated investment advisers Transamerica Financial Advisors Inc. and Transamerica Asset Management Inc., will pay $97M to retail investors that were impacted. However, the entities are not denying or admitting to the regulator\u2019s findings.<\/p>\n<p>The SEC\u2019s order contends that investors placed billions of dollars into mutual funds and strategies that employed flawed investment models that AUIM developed without knowing they had errors. AUIM\u2019s affiliated investment advisers and broker-dealer touted the quantitative models upon which their investment decisions would be made. Between July \u201911 and June \u201915, they purportedly offered, sold, and oversaw 15 mutual funds, variable annuity investment portfolios, variable life insurance investment portfolios, mutual funds, and separately management account strategies that were based on these quantitative models.<\/p>\n<p>Unfortunately, contends the SEC\u2019s order, the models were created by one junior analyst who was inexperienced. Not only that, but there were a number of errors in the models, which failed to operate as promised. Moreover, said the regulator, the Transamerica entities launched the Strategies and Products without first verifying that the models worked as they were meant to and without disclosing any risks identified with the models.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/\"  title=\"Continue Reading Transamerica Entities to Pay $97M to Investors Over Flawed Investment Models\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Four Transamerica entities have settled US Securities and Exchange Charges accusing them of misconduct involving investment models that were faulty. Collectively, the entities, AEGON USA Investment Management LLC (AUIM), its affiliated brokerage firm Transamerica Capital Inc., as well as its affiliated investment advisers Transamerica Financial Advisors Inc. and Transamerica Asset Management Inc., will pay $97M [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":430,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3773,3781,3738,4107],"tags":[3122,3124,3125,3126],"class_list":["post-6371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broker-fraud","category-investment-advisers","category-investor-fraud","category-transamerica","tag-aegon-usa-investment-management-llc","tag-transamerica-asset-management-inc","tag-transamerica-capital-inc","tag-transamerica-financial-advisors-inc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Transamerica Entities to Pay $97M | Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"Four Transamerica entities have settled US SEC charges accusing them of misconduct involving investment models that were faulty.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Transamerica Entities to Pay $97M | Investor Lawyers Blog\" \/>\n<meta name=\"twitter:description\" content=\"Four Transamerica entities have settled US SEC charges accusing them of misconduct involving investment models that were faulty.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/04\/stock-board.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Transamerica Entities to Pay $97M | Investor Lawyers Blog","description":"Four Transamerica entities have settled US SEC charges accusing them of misconduct involving investment models that were faulty.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/","twitter_card":"summary_large_image","twitter_title":"Transamerica Entities to Pay $97M | Investor Lawyers Blog","twitter_description":"Four Transamerica entities have settled US SEC charges accusing them of misconduct involving investment models that were faulty.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/04\/stock-board.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Transamerica Entities to Pay $97M to Investors Over Flawed Investment Models","datePublished":"2018-08-28T00:00:23+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/"},"wordCount":620,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/04\/stock-board.jpg","keywords":["AEGON USA Investment Management LLC","Transamerica Asset Management Inc.","Transamerica Capital Inc.","Transamerica Financial Advisors Inc."],"articleSection":["Broker Fraud","Investment Advisers","Investor Fraud","Transamerica"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/","url":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/","name":"Transamerica Entities to Pay $97M | Investor Lawyers Blog","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/04\/stock-board.jpg","datePublished":"2018-08-28T00:00:23+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Four Transamerica entities have settled US SEC charges accusing them of misconduct involving investment models that were faulty.","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/#primaryimage","url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/04\/stock-board.jpg","contentUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/04\/stock-board.jpg","width":950,"height":634,"caption":""},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/transamerica-entities-to-pay-97m-to-investors-over-flawed-investment-models\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Transamerica Entities to Pay $97M to Investors Over Flawed Investment Models"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; 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