Florida Agent Arrested for $2 Million Alleged Investment Fraud

[TonyC]

This sounds like a bunch of BS.

2 mill dollar loss on a 5 mil investment...using Var.Anunities ? ? ?

Sumthin don't smell right....As usually, LE is hyping a case and shufflin the cards to make themselves look good (which is hard to do).

Clients where old...and they purchased Variable Annuities...and signed all DISCLOSURES required...but they weren't suitable investments for them?

You mean....after the market crashed...the clients were pissed...got some securities lawyer to bully the agent....and then called the Feds.

Since i do everything above board....I would have told them to take a flying truckin leap off Mount Everest.

Dude surrendered his license...and they still want to send him to jail??

Why did he give it up?

He should have told the state to take it from me....prosecute.

 

[sman]

Re: Here It Comes... Beware....

If you are comparing this guy's situation to yours, it really makes me think there is more to your conviction. He has previously falsified documents and now is accused of falsifying applications. Also, looks like some seriously bad investment advice, perhaps to the point of intentionally bad. If you think this guy is a scapegoat, you are sadly mistaken.

Well said Vol, my sentiments exactly. No comparison between the two.

 

[Kenno]

Florida is very proactive in pursuing action against agents/firms who are perceived as preying on the elderly. Especially when annuity products are involved. We don't know the details, but if he put these retirees into products with long surrender periods and/or inappropriate sub-accounts the state will go after him.

And Tony, getting an elderly person to sign all disclosures doesn't get the agent off the hook if in fact the agent is offering inappropriate products. If an agent proposes an annuity with a 12 year surrender period to an 84 year old, and even if the client agrees, the agent has still harmed the client in the eyes of the state. Remember, just because something isn't expressly illegal doesn't mean it is also right. Just because you can do something doesn't always mean you should.

 

[GoCubsGo]

Its time to get out of the annuities business...get out now.....

Or refer the business to another agent with a split.

 

[VolAgent]

This sounds like a bunch of BS.

2 mill dollar loss on a 5 mil investment...using Var.Anunities ? ? ?

Sumthin don't smell right....As usually, LE is hyping a case and shufflin the cards to make themselves look good (which is hard to do).

Clients where old...and they purchased Variable Annuities...and signed all DISCLOSURES required...but they weren't suitable investments for them?

You mean....after the market crashed...the clients were pissed...got some securities lawyer to bully the agent....and then called the Feds.

Since i do everything above board....I would have told them to take a flying truckin leap off Mount Everest.

Dude surrendered his license...and they still want to send him to jail??

Why did he give it up?

He should have told the state to take it from me....prosecute.

Please. Once the decision has been made, most people will sign anything you put in front of them. I can't think of anyone who ever stopped and read what they were actually signing. I'd give them a brief synopsis of what each page was about, but I bet they forgot that a minute later as well.

Business really is about honesty. At some level, we really are trusting people to deal with us fairly. The problem is, it has to be taught at a young age in the home and at school. If it gets to the point that the state has to legislate ethics to adults, it is too late.

 

[The Rabbi]

Florida is very proactive in pursuing action against agents/firms who are perceived as preying on the elderly. Especially when annuity products are involved. We don't know the details, but if he put these retirees into products with long surrender periods and/or inappropriate sub-accounts the state will go after him.

And Tony, getting an elderly person to sign all disclosures doesn't get the agent off the hook if in fact the agent is offering inappropriate products. If an agent proposes an annuity with a 12 year surrender period to an 84 year old, and even if the client agrees, the agent has still harmed the client in the eyes of the state. Remember, just because something isn't expressly illegal doesn't mean it is also right. Just because you can do something doesn't always mean you should.

Maybe the 84 yo is just leaving the annuity to an heir and took advantage of a better %

 

[Kenno]

Maybe, but you better have that strategy documented and acknowledged by all parties, including the annuitant's attorney. Like I said, Florida does not take kindly to even the percieved abuse of the elderly.

 

[CALTCAgent]

Remember, just because something isn't expressly illegal doesn't mean it is also right.

If something is not expressly illegal, then its not illegal. There are many legal things that are wrong and right IMO. To me this makes no sense, either things pass suitability or they don't. They pass, but they might be illegal. Then make them illegal and save people the pain from the start.