Agents Behaving Badly

[somarco]

I worked with this guy years ago. Funny guy but squirrelly. Never figured he would go this far.

Barney T. Lyles, age 59, a current resident of Makaha, Hawaii, and the former CEO of a now defunct insurance broker company called BLIS International Group, was sentenced Friday, May 7, 2010, by U.S. District Court Judge John L. Kane to five years probation for theft from an Employee Benefit Plan, and aiding and abetting. Judge Kane also ordered Lyles to pay $353,445.46 in restitution jointly and severally with co-defendant Brandon T. Ser Voss. Previously, Brandon T. Ser Voss, age 38, a current residence of Elgin, Illinois, was sentenced by Judge Kane for similar conduct.
https://archives.fbi.gov/archives/denver/press-releases/2010/dn051110.htm

http://www.cbs.state.or.us/ins/admin_actions/actions_2006/producer_2006/06-06-003.pdf

Former insurance broker ordered to pay more than $350,000 in restitution for theft – The Denver Post

 

[Brian Anderson]

Posted a few more stories of agents caught up in scams at the link below. Common theme on all but one of these was agents seeking commission by submitting phony applications for life insurance - last two each involving attempts to defraud American Income Life.

Insurance Forums | Agents Behaving Badly Part II

 

[Matthew King]

These are always disheartening to hear and read about. Some people just don't have morals!

 

[papercutter]

None of these stories surprise me. I just learned this weekend that at least 18 states will allow someone convicted of felony forgery to hold an insurance license. Convicted felons can't get a job delivering packages for Fed Ex. But they can sell financial products?!

Then again, I know of a lot of insurance marketers that use unlicensed agents to sell insurance, and just stamp their names on the application. So convicted forgers as licensed insurance professionals? Sure, why not.

 

[xrac]

Locally people that I know and/or have worked with:

https://www.justice.gov/usao-sdin/pr/evansville-man-sentenced-40-months-fraud-case

http://www.tristatehomepage.com/new...nced-in-million-dollar-ponzi-scheme/176736282

https://www.securitieslawyer.com/two-indiana-brokers-barred-by-finra/

 

[Newby]

Locally people that I know and/or have worked with:

https://www.justice.gov/usao-sdin/pr/evansville-man-sentenced-40-months-fraud-case

Newburgh Businessman Sentenced in Million Dollar Ponzi Scheme -

https://www.securitieslawyer.com/two-indiana-brokers-barred-by-finra/

What about this one? Company linked to Evansville businessman ordered to pay $28.2 million judgment. - Tri-State News, Weather & Sports

 

[Willie B]

None of these stories surprise me. I just learned this weekend that at least 18 states will allow someone convicted of felony forgery to hold an insurance license. Convicted felons can't get a job delivering packages for Fed Ex. But they can sell financial products?!

Then again, I know of a lot of insurance marketers that use unlicensed agents to sell insurance, and just stamp their names on the application. So convicted forgers as licensed insurance professionals? Sure, why not.

I thought if the felony was for forgery, bad checks, or other financial scams it was NO! But with other convictions like drugs they could he forgiven after a set period of time?

 

[xrac]

What about this one? Company linked to Evansville businessman ordered to pay $28.2 million judgment. - Tri-State News, Weather & Sports

Is the Tri-State a hot bed for that type of thing?

 

[Brian Anderson]

Another new case - this one in N.J. - where rebating was used...

Evan Pescatore, 35, and his parents Frank Pescatore, 70, and Janice Pescatore, 64, of Asbury Park, are accused of illegally providing people free, high-value life insurance policies in order to collect the lucrative commissions on those policies from the insurance companies, according to a statement from the office of Attorney General Christopher S. Porrino. The trio allegedly then used those proceeds to pay off loans that covered the premiums on the policies.

The scheme involved 18 policies issued by eight insurance companies with a face value totaling $61.5 million.

"This family allegedly conspired in a criminal plot to file more than a dozen fraudulent insurance applications that cost numerous insurance companies millions of dollars in ill-gotten commissions, rebates, and free-short-term insurance," Porrino said in the statement. "Though the alleged scheme was complicated, the defendants carefully shepherded illicit funds through a series of transactions, knowing that they would reap hundreds of thousands of dollars in undeserved commissions along the way."

Parents and son charged in insurance fraud scheme

 

[tlmarketing]

There is still a lot of this type of shady rebating/life settlement activity taking place....maybe these investigators want to take a deeper look and consider the role of the BGA(s) related to these cases as well as some insurance company personnel.....it's a lot bigger than just the agents mentioned.