The Securities and Exchange Commission has enacted an asset freeze and other emergency measures against the estate of a Florida retirement advisor who defrauded hundreds of Federal law enforcement officers.
The advisor, who committed suicide, allegedly won the trust of drug, border patrol and other law enforcement officials, persuading them to invest $34 million in a "bond fund" Ponzi scheme. Believing the fund was a safe harbor for their retirement assets, many lost their life savings in the scam. For his part, the advisor used client funds for personal gain, including paying for annual trips to the Super Bowl for himself and 40 friends.
The Financial Industry Regulatory Authority has booted a Georgia registered rep from the business for looting funds from a client's variable annuity. After persuading an elderly client to grant him power of attorney, the advisor helped the person purchase a $600,000 variable annuity. Then, without authorization, he withdrew $472,000 from the account, depositing part of it into the client's checking account and diverting the rest for his personal use. The advisor also borrowed an additional $275,000 from the client.
A North Carolina health insurance agent is in hot water for allegedly filing false health insurance applications for 269 employees and nine fictitious companies. The transactions generated commissions totaling nearly $68,000. According to the North Carolina Department of Insurance, the agent was charged with five counts of obtaining property by false pretence and was released under a $75,000 secured bond.
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