General American Life Insurance Co., a unit of MetLife Inc., has agreed to a $3.3 million settlement of allegations of late trading in mutual funds in a variable insurance product.
The unit's former senior vice president, William Thater, also agreed to pay $163,137 in disgorgement and civil penalties to settle charges that he permitted the late trading, the Securities and Exchange Commission said Thursday.
General American, a unit of St. Louis-based GenAmerica Financial Corp., and Mr. Thater did not admit or deny the charges.
The SEC said Mr. Thater of Danbury, Conn., had entered into a written agreement to give a wealthy New York family exclusive late-trading privileges in the mutual funds underlying private-placement life insurance policies.
The family, which bought the policies for about $20 million, submitted, confirmed, or canceled 79 mutual fund trade requests after markets had closed, the agency said.
