MetLife Failed To Stop Broker's $20M Ponzi Scheme: Suit

Law360, New York (December 6, 2011, 3:11 PM EST) -- MetLife Securities Inc. on Tuesday was hit with an arbitration complaint alleging it failed to stop a Bronx, N.Y., man from running a $20 million Ponzi scheme out of his firm account.

In a complaint filed with the Financial Industry Regulatory Authority, securities fraud attorney Jenice Malecki claims the company neglected to properly oversee one of its registered representatives, Robert H. Van Zandt, who allegedly defrauded hundreds of investors with his scheme. The plaintiffs seek damages in excess of $4 million.

Van Zandt is under investigation...
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