The Delaware Attorney General’s Office is getting over 120 First State teachers relief for an issue with their retirement accounts.
DOJ says Horace Mann Investors will make settlement payments to affected teachers with IRA accounts opened by one of its registered representatives.
Marion Quirk is assistant unit head for DOJ’s Investor Protection Unit.
She says the situation developed after a change made a few years ago.
“What happened was in 2016, the State of Delaware transitioned from numerous providers for 403 (b) plans, which are retirement plans for educators. There were numerous providers and the State chose a single provider. And that transition to a single provider occured in 2016," Quirk said.
Quirk says shortly after that transition the AG’s office learned a Horace Mann rep, Dieter Hofmann, may have engaged in improper conduct.
She says Hofmann allegedly took advantage of customers with 403(b) accounts confused about the transition, misleading them with inadequate or inaccurate information.
Horace Mann is providing affected teachers with options to compensate for potential lost earnings.
Hofman nor Horace Mann admitted or denied wrongdoing in the settlement, but both will pay a $250,000 fine and $50,000 for investor education for Delaware educators.
Hofman is no longer with Horace Mann and suspended from doing business in Delaware for a year.
