AGSI Ordered to Pay Investors

By: The Associated Press
By: The Associated Press

American General Securities Inc. and one of its brokers have agreed to return $175,279 to Mississippi investors, the bulk of which came from workers at Chevron's Pascagoula refinery.

Secretary of State Delbert Hosemann says former AGSI broker Leroy Jack Smith, who worked out of Mobile, Ala., misrepresented variable annuity investments and withheld critical information through his promises of unrealistic returns.

AGSI was also accused for having failed to adequately supervise Smith's investment activities, which it agreed to correct.

Hosemann says Smith targeted Chevron workers, who diverted their retirement investments into the annuities.

AGSI also will also pay Mississippi $90,000 for investor education programs and $40,000 for administrative costs.

Hosemann says Smith was a registered agent of the company from March 1986 until August 2004.

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