Transamerica to refund $97.6M to investors who were misled
DES MOINES, Iowa (AP) — Transamerica and several related entities have agreed to repay $97.6 million to investors who were misled as part of a settlement with regulators.
The Securities and Exchange Commission says investors were misled about the quantitative models that were used to manage their investments. Transamerica didn’t admit any wrongdoing as part of the settlement.
The SEC said the investment models used contained numerous errors and didn’t function as promised. Investors had been promised proven models developed by Aegon USA Investment Management.
Investigators say Transamerica and Aegon stopped using the faulty models after the errors were found without telling investors.
The settlement money will be paid to affected investors.