Illinois AG Sues Agent ? Fraudulently Marketed Insurance Products to Older Investors

[walleyeb1]

Interesting that they are filing a suit but not pursuing criminal charges. What do you think?

AG files suit against Springfield investment firm - Springfield, IL - The State Journal-Register

Attorney General Madigan Alleges Financial Advisor Deceived Springfield Area Seniors
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Here's an update:

WICS NewsChannel 20 :: News - Top Stories - Businessman Accused of Defrauding Seniors

Local financial firm accused of fraud - Springfield, IL - The State Journal-Register

 

[stuy119]

In light of the Glenn Neasham incident, this is worrisome as there is truly no real indication of fraud going on, or justification in how he's misleading clients (the office locations and RIA stuff is minor, but important - just not worth something of this magnitude).

 

[sman]

Interesting that they are filing a suit but not pursuing criminal charges. What do you think?

AG files suit against Springfield investment firm - Springfield, IL - The State Journal-Register

Attorney General Madigan Alleges Financial Advisor Deceived Springfield Area Seniors
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Here's an update:

WICS NewsChannel 20 :: News - Top Stories - Businessman Accused of Defrauding Seniors

Local financial firm accused of fraud - Springfield, IL - The State Journal-Register

The NewsChannel 20 article states that his clients lost over $263,000. How is that even possible in an index annuity other than early surrender?

Another thing that baffles me is how this action was brought. If we are to believe Mr. Van Dyke, he doesn't have a single client complaint. If he did, wouldn't he have to respond to a complaint? So if there are no client complaints, what prompted the action?

 

[Norwayguy]

The NewsChannel 20 article states that his clients lost over $263,000. How is that even possible in an index annuity other than early surrender?

Another thing that baffles me is how this action was brought. If we are to believe Mr. Van Dyke, he doesn't have a single client complaint. If he did, wouldn't he have to respond to a complaint? So if there are no client complaints, what prompted the action?

I believe it is the state bringing the lawsuit..I watched the video and Van Dyck believes he will be found innocent makes me think he never heard of Glenn Neasham. The state did an audit most likely the securities dept after Van Dyck did not renew his RIA and holding himself out as an unbiased financial advisor is where they will crucify him if he is only now an insurance agent.

 

[walleyeb1]

Here's some updated information. Not quite sure what to make of it.
Illinois slams agent on indexed annuity sales | LifeHealthPro
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Here's another link, it appears part of this is story is this: The Illinois Securites Department in June 2011 issued an order treating indexed annuities as securities.
“The interesting thing is the state claims that indexed annuities are a security,” says Van Dyke. “It is not a security and I believe I will prevail and seek damages because they have no jurisdiction.”

Accused By State Securities Regulators Of Falesly Advertising He Acted As A Fiduciary, Illinois Advisor Says He

I think he is going to have a tough road ahead of him.
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another link variable annuities? Van Dyke insurance license revoked - Springfield, IL - The State Journal-Register
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More news on this

PAT QUINN
Governor
ANDREW BORON
Director
Illinois Department of Insurance
NEWS
FOR IMMEDIATE RELEASE: CONTACT: Kimberly Parker
Monday, March 11, 2013 312-814-1577
[email protected]
***CONSUMER ALERT***
Dept of Insurance Revoked the License of Richard L. Van Dyke
Warns Consumers Not to Conduct Business with Dick Van Dyke Financial LTD
CHICAGO - March 11, 2013. The Illinois Department of Insurance (DOI) is alerting consumers that Dick Van Dyke Financial LTD, of Springfield and producer Richard L. Van Dyke, of Sherman are no longer licensed in Illinois to do insurance transactions. The Department revoked the license for the business entity and Mr. Van Dyke’s producer license after investigations revealed replacement violations, incorrect information on suitability forms, and the use of an advertising website that was not approved by insurers. An investigation by the Secretary of State’s Office found annuity sales to consumers cost them more than $235,000 in surrender fees; and the Attorney General’s Office has announced action against Mr. Van Dyke for misleading advertising.
Dick Van Dyke Financial LTD, of Springfield and producer Richard L. Van Dyke, of Sherman –
On Friday, March 8, the Department sent notification the insurance producer licenses had been revoked. Mr. Van Dyke had been licensed to sell life, health and variable lines of insurance since 2005. The licenses were revoked based on based on an investigation that revealed dishonest practices, demonstrations of incompetence, untrustworthiness and financial irresponsibility in the transactions of business in this state. The Order of Revocation, which includes a $25,000 civil penalty, takes effect 30 days after the notification was sent.
Mr. Van Dyke has 30 days to request a hearing regarding the Department’s action.
More Information
The Department’s mission is to protect consumers by providing assistance and information, by efficiently regulating the insurance industry’s market behavior and financial solvency, and by fostering a competitive insurance marketplace. The Illinois Department of Insurance assists consumers with all insurance complaints, including health, auto, life, and homeowner. Consumers in need of information or assistance should visit the Department’s web site at insurance.illinois.gov or call our toll-free hotline at (866) 445-5364.
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[sman]

I think this guy is toast.

 

[stuy119]

I think he's in trouble, but from a purely regulatory perspective, not due to problems he caused his clients. His clients made money and kept their assets protected while growing in a way that made him money via commission.

He just didn't follow a regulation-heavy state's requirements.

 

[walleyeb1]

Ok now this makes me sick, see link, I don't understand how this could happen:

Looks like he moved them all from one company, not sure if if he put the new sale all with one company or spread them around. How this gets by suitability at any company is beyond me!

www.ilsos.gov/adminactionssearch/adminactionssearch?command=viewPDF&itemId=92%203%20ICM7%20PRODCMZ13%20SE_AA_MgtView59%2026%20A1001001A13C07B05839C1145918%20A13C07B05839C114591%2014%201051

 

[stuy119]

Yeah, I'm going to retract my previous comments. This guy should have just taken the $10K fine and moved on.

IMO, he's going to be in a worse spot than Glenn Neasham is/was/will be. This is multiple cases of unjustifiable replacement - all with the same freakin' company.

What a dumbf*&k.

 

[DHK]

ProducersWeb - Retirement - A stand-in for the fiduciary standard?

Even John Olsen (an industry subject-matter expert on all this "source of funds" business) seems to be on your side regarding the Illinois Department of Securities.