Senior financial fraud uncovered in California, New Jersey

A California agent lost his insurance license after selling unregistered securities to seniors. According to Department of Insurance investigators, the agent gave misleading advice to at least six state investors, collecting over $1.5 million over a 10-year period. Among the phony investments the agent promoted was an unauthorized annuity from the National Foundation of America, a purported charitable organization. In reality, the foundation was an unregistered and unlicensed entity, one of whose executives was earlier convicted of fraud following an FBI investigation.

A New Jersey insurance agent will serve up to 10 years in state prison for defrauding 20 clients out of some $1.5 million. The agent held himself out as an investment advisor from 2009 to 2012, focusing his efforts on area senior citizens. He promised to invest their money in various securities, but instead used their money for personal purposes.