A Rhode Island financial planner and lawyer, Joseph Caramadre, has been charged by the feds with 66 counts of fraud, conspiracy and identify theft in relation to a scheme to get him and his clients to profit from the guaranteed death benefits in variable annuities (VA). Prosecutors allege Caramadre exploited a loophole in the VA contracts that did not require the investor in the VA and the annuitant to be the same person. Caramadre allegedly enticed dying people to give up their vital information for $2,000 so they could serve as the annuitant. When that person died, the investor/beneficiary would receive the death benefit. Several insurance companies, including Nationwide and Transamerica, have sued Caramadre, who contends he acted as a “Robin Hood.” So far, the civil courts have ruled against the insurers.

 

ThinkAdvisor

Join ThinkAdvisor

Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!

  • Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
  • Exclusive discounts on ALM and ThinkAdvisor events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join ThinkAdvisor

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.