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Who was the deleted person that liked this?
Upcoming TIP interview with JD
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Who was the deleted person that liked this?
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I see a deleted member liking a post now and then. Could it be JG?
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You may have heard about a little organization known as the SEC ...
American-Amicable Life Insurance Company of Texas; Pioneer American Insurance Company; and Pioneer Security Life Insurance Company: Lit. Rel. No. 19791 / August 3, 2006
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19791 / August 3, 2006
SEC v. American-Amicable Life Insurance Company of Texas; Pioneer American Insurance Company; and Pioneer Security Life Insurance Company, Case No. 06-CV-1553 JAH WMC (S.D. Cal. filed August 3, 2006)
SEC Charges Texas Insurance Firm With Deceptive Sale of Investments to Military Personnel
57,000 Military Personnel to Benefit From $10 Million Settlement
The Securities and Exchange Commission today sued a Waco, Texas insurance company and its affiliates for targeting American military personnel with a deceptive sales program that misleadingly suggested that investing in the company's product would make one a millionaire. Since 2000, approximately 57,000 members of the United States military services purchased the product. The vast majority earned little or nothing on their investment.
The Commission's complaint, filed in the United States District Court for the Southern District of California, charged affiliated entities American-Amicable Life Insurance Company of Texas, Pioneer American Insurance Company, and Pioneer Security Life Insurance Company (together, "American-Amicable"), all based in Waco, Texas, with securities law violations.
American-Amicable has agreed to settle the action by paying $10 million to the approximately 57,000 military personnel who invested in the product sold as an investment known as "Horizon Life." The settlement is part of a global settlement of claims brought by the Commission, state insurance regulators led by the Georgia Department of Insurance and the Texas Department of Insurance, and the United States Attorney's Office for the Eastern District of Pennsylvania. The settlement with the other regulators will provide additional relief, which the other regulators value at approximately $60 million. In the agreed settlement, the company has neither admitted nor denied the Commission's allegations. Pursuant to the settlement, American-Amicable will discontinue sales of Horizon Life and will terminate the deceptive sales program, which it called the "Building Success" system.
Unlike insurance products legitimately offered to a wide range of potential buyers with a potential interest in the insurance features of those products, Horizon Life was targeted at military personnel who had little or no interest in insurance because they already were provided access to low-cost insurance sponsored by the government. Instead, American-Amicable represented Horizon Life to military personnel as a security and a wealth-creating investment. As a material element of its marketing, American-Amicable senior staff trained its sales agents to hold themselves out as "financial advisers" or "financial coaches." Purporting to play that role, the sales agents then misled military personnel to believe they could become millionaires if they invested in Horizon Life. At the same time, the agents denigrated other investment alternatives, claiming that mutual funds, bank savings accounts and government bonds were not sensible investments compared to Horizon Life.
Although the written materials ultimately provided to investors apparently accurately described the Horizon Life product, the company's deceptive sales pitch did not. Contrary to the representations, the overwhelming majority of military personnel who purchased Horizon Life earned little or nothing from their investment.
The Commission's complaint charges American-Amicable with violating Sections 17(a)(2) and (3) of the Securities Act of 1933, an antifraud statute. Without admitting or denying the allegations, American-Amicable has agreed to be enjoined from further violations of these provisions, and to pay disgorgement of $10 million, which will be distributed to the affected investors.
In related matters, Georgia Insurance Commissioner John W. Oxendine and Texas Insurance Commissioner Mike Geeslin announced today a multi-state settlement with American-Amicable alleging violations of state insurance and consumer protection laws, and U.S. Attorney Patrick L. Meehan of the Eastern District of Pennsylvania announced the filing of a complaint, settlement and proposed consent decree with American-Amicable alleging civil claims of wire and mail fraud.
American-Amicable Life Insurance Company of Texas; Pioneer American Insurance Company; and Pioneer Security Life Insurance Company: Lit. Rel. No. 19791 / August 3, 2006
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You may have heard about a little organization known as the SEC ...
American-Amicable Life Insurance Company of Texas; Pioneer American Insurance Company; and Pioneer Security Life Insurance Company: Lit. Rel. No. 19791 / August 3, 2006
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19791 / August 3, 2006
SEC v. American-Amicable Life Insurance Company of Texas; Pioneer American Insurance Company; and Pioneer Security Life Insurance Company, Case No. 06-CV-1553 JAH WMC (S.D. Cal. filed August 3, 2006)
SEC Charges Texas Insurance Firm With Deceptive Sale of Investments to Military Personnel
57,000 Military Personnel to Benefit From $10 Million Settlement
The Securities and Exchange Commission today sued a Waco, Texas insurance company and its affiliates for targeting American military personnel with a deceptive sales program that misleadingly suggested that investing in the company's product would make one a millionaire. Since 2000, approximately 57,000 members of the United States military services purchased the product. The vast majority earned little or nothing on their investment.
The Commission's complaint, filed in the United States District Court for the Southern District of California, charged affiliated entities American-Amicable Life Insurance Company of Texas, Pioneer American Insurance Company, and Pioneer Security Life Insurance Company (together, "American-Amicable"), all based in Waco, Texas, with securities law violations.
American-Amicable has agreed to settle the action by paying $10 million to the approximately 57,000 military personnel who invested in the product sold as an investment known as "Horizon Life." The settlement is part of a global settlement of claims brought by the Commission, state insurance regulators led by the Georgia Department of Insurance and the Texas Department of Insurance, and the United States Attorney's Office for the Eastern District of Pennsylvania. The settlement with the other regulators will provide additional relief, which the other regulators value at approximately $60 million. In the agreed settlement, the company has neither admitted nor denied the Commission's allegations. Pursuant to the settlement, American-Amicable will discontinue sales of Horizon Life and will terminate the deceptive sales program, which it called the "Building Success" system.
Unlike insurance products legitimately offered to a wide range of potential buyers with a potential interest in the insurance features of those products, Horizon Life was targeted at military personnel who had little or no interest in insurance because they already were provided access to low-cost insurance sponsored by the government. Instead, American-Amicable represented Horizon Life to military personnel as a security and a wealth-creating investment. As a material element of its marketing, American-Amicable senior staff trained its sales agents to hold themselves out as "financial advisers" or "financial coaches." Purporting to play that role, the sales agents then misled military personnel to believe they could become millionaires if they invested in Horizon Life. At the same time, the agents denigrated other investment alternatives, claiming that mutual funds, bank savings accounts and government bonds were not sensible investments compared to Horizon Life.
Although the written materials ultimately provided to investors apparently accurately described the Horizon Life product, the company's deceptive sales pitch did not. Contrary to the representations, the overwhelming majority of military personnel who purchased Horizon Life earned little or nothing from their investment.
The Commission's complaint charges American-Amicable with violating Sections 17(a)(2) and (3) of the Securities Act of 1933, an antifraud statute. Without admitting or denying the allegations, American-Amicable has agreed to be enjoined from further violations of these provisions, and to pay disgorgement of $10 million, which will be distributed to the affected investors.
In related matters, Georgia Insurance Commissioner John W. Oxendine and Texas Insurance Commissioner Mike Geeslin announced today a multi-state settlement with American-Amicable alleging violations of state insurance and consumer protection laws, and U.S. Attorney Patrick L. Meehan of the Eastern District of Pennsylvania announced the filing of a complaint, settlement and proposed consent decree with American-Amicable alleging civil claims of wire and mail fraud.
SEC Complaint in this matter
American-Amicable Life Insurance Company of Texas; Pioneer American Insurance Company; and Pioneer Security Life Insurance Company: Lit. Rel. No. 19791 / August 3, 2006
Looks like they were found guilty of nothing.
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They paid approximately 60 million to settle and avoid criminal charges. Do you not know how these things work? A criminal indictment is tantamount to a death sentence for a corporation. The fact that the company admitted nothing but agreed to disgorge 60 million in cash to settle sure doesn't indicate this was all a big mistake and they did nothing wrong.
"American-Amicable has agreed to settle the action by paying $10 million to the approximately 57,000 military personnel who invested in the product sold as an investment known as "Horizon Life." ... The settlement with the other regulators will provide additional relief, which the other regulators value at approximately $60 million. In the agreed settlement, the company has neither admitted nor denied the Commission's allegations. Pursuant to the settlement, American-Amicable will discontinue sales of Horizon Life and will terminate the deceptive sales program, which it called the "Building Success" system."
I don't have an Am Am contract - never have, never will. But I have no problem selling KSKJ - and yes, I do explain the assessment provision of the policy and I do ask the baptism and religion questions. I give the client a choice between KSKJ or a higher premium option with Trans (which is still lower than AmAm). Most choose Trans, but for those who choose KSKJ, my conscience is clear.
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It does look like in 2019 that American Veterans are still seeking help from lawyers about what was done to them.
Who was the person bragging that he is the biggest profiter/marketer from this company? Bragging that he flips business to these guys? How much time does he spend assisting American Veterans that are wondering why the “retirement plans” they purchased from his company turned out to just be term life insurance?
I had had no idea that in 2019 many of these American Veterans had still not been made whole. Scroll to the bottom of the page and read the comments from some of the American Veterans. Is this true? American-Amicable Life Insurance Co. Settlement
Who was the person bragging that he is the biggest profiter/marketer from this company? Bragging that he flips business to these guys? How much time does he spend assisting American Veterans that are wondering why the “retirement plans” they purchased from his company turned out to just be term life insurance?
I had had no idea that in 2019 many of these American Veterans had still not been made whole. Scroll to the bottom of the page and read the comments from some of the American Veterans. Is this true? American-Amicable Life Insurance Co. Settlement
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It's 2019 - how many agents scammed by his lead and "pre-set appointment" business have been made whole. By his own admission - none.
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Come on now haha
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This conversation is a bit intriguing to me.
We are convicting people of crimes without being found guilty in a court of law?
Shall we use this same threshold to judge our own?
How about our spouse?
How about our partners spouse?
Moreover, if you read the court documents you will see it was 1099 contracted agents, who were also military personnel, who allegedly misrepresented the product.
This is exactly why brokers are not the best business model, and why selling by phone, where all presentations are recorded, is the most compliant way to sell.
Love the convo... this is good for everyone to see.
We are convicting people of crimes without being found guilty in a court of law?
Shall we use this same threshold to judge our own?
How about our spouse?
How about our partners spouse?
Moreover, if you read the court documents you will see it was 1099 contracted agents, who were also military personnel, who allegedly misrepresented the product.
This is exactly why brokers are not the best business model, and why selling by phone, where all presentations are recorded, is the most compliant way to sell.
Love the convo... this is good for everyone to see.
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