Agent Arrested and Convicted for Selling an Annuity.

[Crabcake Johnny]

Thought that title would grab your attention. The title says the agent was arrested for embezzlement. I guess I need to look up the definition because based on this article the money withdrawn from her CD went into an annuity contract.

If the funds were indeed used to purchase the annuity then this guy was actually arrested for an improper sale? Wow.



INSURANCE COMMISSIONER POIZNER ANNOUNCES LAKE COUNTY INSURANCE AGENT ARRESTED FOR ALLEGEDLY EMBEZZLING MONEY FROM A SENIOR



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California Insurance Commissioner Steve Poizner today announced the arrest of a Lake County insurance agent for allegedly embezzling money from a senior client. Glenn Neasham, 50, of Hidden Valley Lakes, was arrested on December 14.

"Insurance agents or brokers who steal from vulnerable seniors will not get away with their shameful tricks," said Commissioner Poizner. "CDI investigators will continue working to track down any unscrupulous agent who preys on California’s seniors."

An investigation conducted by the California Department of Insurance discovered that Neasham, doing business as Glenn Neasham Insurance Agency, sold a $175,000 annuity to an 83 year old woman on February 6, 2008. The victim obtained the funds to purchase the annuity by withdrawing her savings from a certificate of deposit. The investigation determined that the victim lacked the mental capacity to enter into this contract, and that the terms and conditions of the annuity contract were not in her best financial interest.

The Lake County District Attorney’s Office is prosecuting this case. If any person feels they have been a victim of Glenn Neasham, please contact the Department of Insurance at 707-751-2005.

Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Nearly 2,800 insurance fraud-related arrests have been made by CDI since Commissioner Poizner took office in 2007 - more arrests than have been made during any other three year period, under any previous insurance commissioner.

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[dgoldenz]

Re: Agent Arrested for Selling Senior an Annuity

There has to be more to the story than that...

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

I had to re-read is several times. The article states that the $175K went into an annuity contract. Because of that I'm looking for the embezzlement aspect of this.

I'm assuming the angle they're using is since the woman was of diminished mental capacity the agent "stole" her money.

I'm also wondering if part of the arrest was that the annuity wasn't in her best interest. Dangerous stuff here unless there's a lot more to this story.

 

[sman]

Re: Agent Arrested for Selling Senior an Annuity

This is nothing more than a politician trying to make a name for himself unless, as you have stated, there is more to the story.

Since I have no clue what happened in the client meeting, nor what product the agent sold, I will reserve judgment. If he sold her some Index Annuity or a long surrender charge annuity, then he may be guilty of selling her something he shouldn't have. Does it make him a criminal? I don't think so. Should he be fined and maybe lose his license? Possibly. But if he sold her a fixed annuity paying a set rate of return, I don't see the big deal unless this was her entire nest egg and she needed some of the principal to make ends meet.

Politicians make me sick!

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

Fully agree. Depending on the circumstance the agent should lose his license (not enough here to go on) and through legal channels possibly the lady could recoup her money.

That this resulted in an arrest is beyond me. When I saw the title I assume he pocked the money. After I read the money went into an annuity I was stunned.

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

Fully agree. Depending on the circumstances the agent should lose his license (not enough here to go on) and through legal channels possibly the lady could recoup her money.

That this resulted in an arrest is beyond me. When I saw the title I assume he pocked the money. After I read the money went into an annuity I was stunned.

 

[RichMcK]

Re: Agent Arrested for Selling Senior an Annuity

State Attorney General Eliot Spitzer a New York politician, who bought about all those law suits against business owners, he had political aspirations, only to have skeletons in his own closet. When revealed came crashing down. Are we looking at the same?

 

[STIBROKER]

Re: Agent Arrested for Selling Senior an Annuity

A. That age of a client there had to be a family member that looks at her affairs...agent should have sought out a family member to explain what they were doing...

B. Most likely the surrender charges on this policy probably went well past this lady's life expectancy could be a problem and if this was all the money she had would not have been in her best interest.....

The investigation determined that the victim lacked the mental capacity to enter into this contract, and that the terms and conditions of the annuity contract were not in her best financial interest.

 

[Norwayguy]

Re: Agent Arrested for Selling Senior an Annuity

A. That age of a client there had to be a family member that looks at her affairs...agent should have sought out a family member to explain what they were doing...

B. Most likely the surrender charges on this policy probably went well past this lady's life expectancy could be a problem and if this was all the money she had would not have been in her best interest.....

A. Might not be the case...My wife has both of her grandmothers still alive, they are 84 and 87 respectively and both live on their own and control their own finances.

B. I did not notice surrender charge length in the article.

I can't believe this would not be a civil matter...The annuity was approved by the DOI for sale in that state...I would have to assume suitability paperwork was completed and filed on this case, I can't think of a carrier that would not require paperwork on an 81 year old.

 

[COInsguy]

Re: Agent Arrested for Selling Senior an Annuity

A. Might not be the case...My wife has both of her grandmothers still alive, they are 84 and 87 respectively and both live on their own and control their own finances.

B. I did not notice surrender charge length in the article.

I can't believe this would not be a civil matter...The annuity was approved by the DOI for sale in that state...I would have to assume suitability paperwork was completed and filed on this case, I can't think of a carrier that would not require paperwork on an 81 year old.

My thoughts exactly, getting arrested for an approved product? Sounds like someone trying to make a name for themselves. Unless this agent ACTUALLY embezzled money somewhere in this transaction ( which could be possible) being locked up for a improper sale seems a bit of an over reach.