TIAA Accused of Misleading Retired Investors

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A unit of investment firm TIAA, which runs retirement plans for many educators and others, will pay $97 million to settle charges that it misled thousands of investors from both the Securities and Exchange Commission and New York State.

Attorney General Letitia James The New York office said the company “relied on its reputation as a reliable and objective financial advisor to profit from its clients through fraudulent and manipulative sales practices.”

state and federal securities regulators TIAA employees said they are encouraging investors to move from retirement plans with their employers, where wages are lower, to different plans that help the company make more money.

TIAA’s tactics have been under scrutiny before. in reporting by The New York Times.

TIAA neither acknowledged nor denied the findings as part of the settlement. “We regret the times that we did not meet our customers’ expectations of us,” the company said in a statement. “We learned some valuable lessons and applied them to improve our training, audit controls and disclosures.”

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