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Aflac down more than 3% on fraud allegations

Published 01/12/2018, 09:39 AM
© Reuters.  Aflac down more than 3% on fraud allegations
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  • "Aflac (NYSE:AFL) has exploited workers, manipulated its accounting, and deceived shareholders and customers, according to nine former employees," reports David Dayen at The Intercept.
  • The story is based on interviews with current and former employees, as well as three lawsuits, says Doyen, with the lawsuits already leading to a number of regulatory investigations. Management and the board, says Doyen, have known about the issues for more than a year, but have disclosed little-to-nothing to shareholders.
  • Among the charges are Wells Fargo-like dealings in which employees - under major pressure to hit targets - resort to unauthorized sales. And that's just the start. Further reading makes the company sound a bit pyramid schemish, with salespeople encouraged to boost income by recruiting more people into the company.
  • Dayen takes note of June's abrupt resignation of President Paul Amos II, the founder's grandson, and the sale of half of his holdings just days after. Over the last year, insiders have sold 2.182M shares of Aflac, while purchasing 481K.
  • Shares down 3.15% in active early trading.
  • Now read: What Do You Expect For Aflac In 2018?


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