A racketeering lawsuit has been filed by a former New York Life Insurance Co. president on behalf of thousands of employees, alleging their pension and 401(k) plans were used as seed money for the company’s mutual fund business.
James A. Mehling, 50, claims in the class-action suit that he was fired in March 1999 because other company executives were concerned he would blow the whistle on an “ongoing fraudulent scheme of self-dealing and breach of trust.” The company emphatically denies the allegations, calling the charges unfounded.
Mehling was reportedly fired for insubordination. But just a few days prior to his dismissal, Mehling’s performance was praised by company Chairman and Chief Executive Seymour Sternberg, who, according to the lawsuit, told Mehling he would receive a raise. Mehling filed a wrongful termination suit last October. The new class-action suit replaces that one.
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