Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Annuities

California advisor charged with grand theft from seniors

Your article was successfully shared with the contacts you provided.

A California advisor has been arraigned and charged with two felony counts of grand theft from elders. The advisor allegedly accepted a total of $60,000 in premiums from two elderly clients to purchase annuities. But the advisor never sent the premiums to the insurer and failed to refund the money. In addition, the advisor helped the victims refinance their mortgages in order to free up money for the annuity and other investments, bringing the total amount stolen to $160,000. As a result of the advisor’s scam, both victims lost their homes to foreclosure.

An Oregon insurance agent has been fined $9,000 for misleading the public about his expertise and qualifications and for failing to report a misdemeanor criminal prosecution. According to the state’s insurance department, the agent used the title “Certified Senior Advisor” after the credential expired for nonpayment of dues. The agent also claimed to have written a booklet about annuities that he never wrote. Furthermore, he implied he had a business called “Senior Financial Services” when in fact it was an assumed business name with no employees. Finally, the agent failed to notify the department that he was prosecuted in 2009 for telephone harassment and unlawful possession of a firearm.

Three of four Pennsylvania men accused of scamming senior citizens out of $700,000 have admitted operating a home health care, security and long-term care insurance scheme in four states. According to authorities, the men persuaded some 258 elderly victims into buying phony home care and security services. They also convinced them to cancel their legitimate LTC insurance and replace them with bogus policies.

For more from Harry Lew, see:


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.