Planners Privy To Kickbacks Liable Under ERISA: 3rd Circ.

Law360, New York (November 8, 2012, 6:40 PM EST) -- The Third Circuit said Thursday in a precedential decision that financial planners, despite lacking fiduciary duty, can be sued under the Employee Retirement Income Security Act if they are aware of kickbacks connected to a benefit plan's investment choices.

In its 64-page opinion, a three-judge panel found that because financial planner James Barrett was aware of illicit payments Commonwealth Life Insurance Co. made to plan administrator Tri-Core Inc. to invest in insurance policies, he can be sued for damages, leaving intact a New Jersey district court...
To view the full article, register now.