A former wirehouse financial advisor has been indicted for swindling an elderly client out of $1.8 million. The California advisor faces 27 counts of bank fraud, wire fraud, money laundering, and aggravated identity theft. According to a federal prosecutor, the advisor forged more than $1.8 million in checks from the client’s brokerage account and home equity line of credit, siphoning funds to relatives, his girlfriend, and other acquaintances. He also used the money to pay for his credit card bills.
A Texas advisor has been convicted of mail fraud in connection with a life settlement scheme that victimized several life insurance companies. The advisor faces a maximum sentence of 20 years in prison, a $250,000 fine, and restitution. He also is subject to an additional 10-year sentence, to be served consecutively, because he committed the crime while on pre-trial release for another fraud case. According to authorities, the advisor persuaded elderly middle-income consumers to apply for life insurance at no cost. He explained that when they died, their beneficiaries would receive a large benefit. However, he told insurers the individuals were wealthy estate-planning clients with a need for premium financing. The advisor then submitted phony applications and related documents to the insurers, never informing them he planned to transfer the policies to investors. Through his fraud, the advisor received a commission of 95 percent to 105 percent of first-year premium for each policy.
Preying on unemployed Florida residents, an insurance agent created a fictitious employment agency that generated names for fraudulent life policy applications. According to Florida authorities, the agent “earned” more than $330,000 in bonuses and commissions from a life insurer before being nabbed by Florida’s Division of Insurance Fraud. The agent’s modus operandi was to develop a shell company to lure individuals into attending employment seminars through the southeastern United States. He then used the names of 285 attendees to apply for fictitious life insurance policies. Once the policies started cancelling for non-payment, the insurer tipped off authorities. If convicted, the agent faces up to 30 years in prison.