Both MetLife Inc. and Prudential Financial Inc. are the subject of a whistleblower lawsuit that is being brought against them by a company that tracks unclaimed state funds and claims the companies defrauded the state of Illinois out of hundreds of millions of dollars.
According to Bloomberg, Total Asset Recovery Services LLC (TARS) - a Michigan -based researcher concerning unclaimed funds that are held by state treasurers on behalf of individuals - filed the whistleblower lawsuit after learning that both insurance companies had withheld money from 4,766 unclaimed life insurance policies held by deceased policy holders in Illinois.
In Illinois, life insurance funds that are not claimed for more than five years after become payable under policy terms become state property. However, TARS was able to uncover unclaimed funds from policyholders who died from 1982 to 2004 that the insurance companies never turned over to the state. The estimated amount of the unreturned funds reached $524 million.
If found guilty, MetLife and Prudential could each face up to $26 million in penalties to Illinois, as well as damages worth triple the amount of the funds they withheld. Using the Illinois’ False Claims Whistleblower Reward and Protection Act, TARS is seeking ti share 15 to 30 percent of the damages or settlement amount.
If you are aware of financial fraud that is occurring at the expense of the government, call Sokolove Law today to learn more about pursuing a whistleblower lawsuit.