UPDATE Families of fallen soldiers are now suing Prudential accusing it of stealing from the dead

Prudential Financial makes grave robbers look honorable. Hold on to your seats as you learn that Prudential, which has been administering a life insurance program for the Dept of Veterans Affairs, has been quietly pocketing tens of millions from the families of dead servicemen by not paying out the death benefit entirely, instead they pay in increments while collecting interest. Remember all this when politicians tell you they want to privatize government services.

Give Prudential credit for the scheme. In 1999 they convinced the VA to offer a program to grieving families that doesn’t not pay out the full death benefit, instead Prudential would administer a fund where families could write checks drawn on an account. The program sounds so good but the fine print allowed Prudential to put the money in a non-FDIC insured corporate account where Prudential pocketed interest. Are the families told the account is not FDIC insured, NO. Are families told Prudential is pocketing the majority of the interest NO. Does the VA even know how much money Prudential has made NO.

Now lets follow the money. According to Open Secrets.Org, Prudential spent over $36 million lobbying from 2001 to 2009.Add to that all their political contributions to politicians. Topping the list of recipients is Pres. Obama who has received over $100,000 from Prudential. Now add to the mix the new financial reform bill just signed by the president. The bill will not regulate the insurance industry, it will merely collect information. Tell all that to the grieving families who got short changed.

This post is tagged dept of veterans affairs, http://www.investigativeguy.com, Investigativeguy, John Mattes, john mattes reporter, lobby, prudential alliance account, prudential insurance, survivors, Va