(Updates with excerpt from filing in third paragraph.)
Oct. 12 (Bloomberg) -- Massachusetts Mutual Life Insurance Co. and John Hancock Life Insurance Co. USA were sued by a limited-liability company that said they lost millions of the company’s dollars to Bernard Madoff’s Ponzi scheme.
SSR II LLC bought variable life insurance policies from John Hancock and Security Life of Denver Insurance Co. Through the investment-account component of the policies, SSR invested $13 million in a Tremont Group Holdings Inc. fund, according to a lawsuit filed today in New York State Supreme Court.
The fund, through its fund-of-funds structure, allocated 22 percent of its assets to other funds, substantially all of which went to Madoff, according to the complaint. MassMutual and other defendants “maintained significant influence and/or control over and provided substantial assistance to” various Tremont entities, SSR said.
“Rather than managing a portfolio of underlying securities, however, defendants funneled over one-fifth of plaintiff’s investment to Madoff’s Ponzi scheme, where those funds were dissipated,” SSR II said.
Representatives of Boston-based John Hancock, MassMutual and Security Life of Denver couldn’t be reached for comment after normal business hours.
The case is SSR II LLC v. John Hancock Life Insurance Co., 652793-2011, New York State Supreme Court (Manhattan).
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