Evan Bayh, the former Democratic senator from Indiana and current Senate candidate, has at least $1 million in holdings with a Bermuda-based insurance company, Athene, that has a business model that a class action lawsuit is challenging as a bait-and-switch scam.
Athene’s business plan, the suit claims, is to buy up the annuities of retirees that had previously been invested in bonds and blue chip stocks, and instead pump their money into the risky bets of a private equity firm. That firm turns out to be Apollo Global Management ― where Bayh is a highly paid senior adviser ― which actually owns Athene, so if the gamble pays off, Athene’s parent company gets rich. If it flops, the retirees take the hit.
Private equity’s push into the once-boring annuity industry was the subject of a 2013 Bloomberg story, which found Apollo leading the way. “It’s a heads-I-win, tails-you-lose game,” said Lawrence Rybka, CEO of…
