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Life Health > Life Insurance

Advisor bilks parents of $1.3 million

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A not-so-dutiful son has pleaded guilty to stealing more than $1.3 million from his parents. Over many years, the advisor pretended to be managing his parents’ investments. However, in reality he was siphoning money from their accounts and using their money for his own purposes. According to authorities, he stopped only when there was nothing left to steal. For his not-so-loving actions, the son is facing a three- to five-year prison sentence, plus the revocation of his insurance license for five years. He must also repay his parents’ money in full.

A Massachusetts investment advisor has been sentenced to eight-plus years in prison, along with three years of supervised release, after pleading guilty to 27 counts of mail and wire fraud. According to authorities, the advisor ran a $7 million life-settlement scheme in which he told clients their money would be invested in insurance instruments. Instead, he siphoned it off for personal and business needs. The advisor perpetrated the fraud for 10 years, and continued doing so even after being charged with the crime, resulting in his bail revocation.

A North Carolina life insurance agent has been charged with one count of obtaining property by false pretense. Department of Insurance criminal investigators allege that the former insurance agent for a large voluntary benefits carrier fraudulently obtained $2,196 in advance commissions for writing life insurance policies in November and December 2012. The agent is accused of fabricating a company and filing 40 fraudulent applications for life insurance by listing himself, family members and friends as employees.

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