Agent Arrested and Convicted for Selling an Annuity.

[ShanHikari]

Re: Agent Arrested for Selling Senior an Annuity

While I love & miss living in California......this is just one more example (possibly unless this guy really stole some money somewhere in the deal) of why I wouldn't move back and why so much is screwed up out there!

Take the good with the bad I guess. I'll admit I'm not crazy about the laws here either, nor am I all that pleased with Poison, I mean Poizner.

But keeping some extra papers with you isn't too bad, its the problem when children get involved that don't see the value in a product. One trick I use for estate planning when dealing with children "can you sign this wavier releasing me from any consequences that arise from not purchasing life insurance to cover your estate tax that I have advised upon? Just a precaution that my company makes us take"

I want to say 30% of the time they drop the attitude and play ball. Still 30% more than I would have had I guess lmao

 

[CALTCAgent]

Re: Agent Arrested for Selling Senior an Annuity

I doubt it would have gone through suitability if she was expected to not out live the surrender. I think the problem came from surrendering the CD, there had to have been a charge on it, which alerted a family member who was watching the funds for her.

That's my personal opinion at least.

That argument seem very lacking in certain areas . . . Well this is why when you meet with someone over age 60 (or at least I do this) I make sure that they sign a document stating that we have meet at least twice before a purchase has been made. 24 hour waiting period, I typically do 48. Then it's always best to get someone else involved, son, daughter etc. And have them sign a document stating that they have witnessed the discription of the product, the length of it, amount etc.

Keep your rear end covered and its not a problem. Annuities and LTC are easy for children to make a fuss about. In LTC if they don't purchase an amount that I recommend then I always have them sign a document stating that, though my agent has advised me to take XXXXX I am instead choosing plan XXXXX.

What amount do you recommend?

Potential problems with signed recommendations I see:

1. If you recommend more than they feel they can afford, you could potentially lose the sale.

2. If you recommend less than what they need then it was your recomendation that was wrong. Its really their choice.

There of course is financial suitability forms for LTC and annuities. You could always have an extra form like you suggest, then have another one releasing you of liability from a wrong recommendation, letting them know that your crystal ball isn't always perfect, lol.

This case definitely sounds concerning for agents.

I have always heard that when push comes to shove, the companies will give back the money with no surrender charges and chargeback the agent, but no criminal charges.

I guess not, thats not enough it appears.

The details of this case will be very interesting to find out.

Thanks!

 

[Dave020]

Re: Agent Arrested for Selling Senior an Annuity

Lake County News | California - Businessman arrested on elder theft charge, special allegations

LAKEPORT, Calif. – A local businessman has been arrested on allegations of theft from an elderly client.


Glenn Andrew Neasham, 50, of Kelseyville was taken into custody by a Lake County District Attorney's Office investigator Tuesday afternoon, according to court and jail records.


He later was released on $20,000 bail.


Neasham – known as “The Safe Money Guy” – is owner of Neasham Financial and Insurance Group and OxyboostH20!, based in Lakeport.


He is charged with felony theft from an elder that the District Attorney's Office alleges took place between Feb. 1 and Feb. 28, 2008.


The case, filed by Senior Deputy District Attorney Rachel Abelson, is based on an investigation largely carried out by the California Department of Insurance.


It alleges that Neasham “committed theft and embezzlement” against the property of the then-83-year-old female client, with the property valued at more than $950.


Neasham is also charged with two special allegations – that he “took, damaged or destroyed” property of more than $50,000 and that the theft totaled more than $100,000.


The investigation was triggered when, in February 2008, the Savings Bank of Mendocino County made a report because the alleged victim came in to take out $175,000 in order to purchase an annuity, according to case documents.


The California Department of Insurance received a report on the case in May 2008 and assigned an investigator who subsequently interviewed the alleged victim, her boyfriend – who has been named the annuity's beneficiary – and Neasham.


The report stated that Neasham at various times provided information and at other times reportedly yelled at the investigator and threatened to bring legal action for defamation.


The alleged victim's son told the investigator that his mother had Alzheimer's disease. The investigator noted in her report that the woman often seemed confused and also appeared to be under the control of the boyfriend, who case documents indicated had been a client of Neasham's for about 10 years.


Neasham told the investigator he was not aware of an Alzheimer's diagnosis, and maintained that he was working hard to get his client a good return on her money, as he said he had done for other clients.


In late June and early July of 2009, the investigator got copies of Neasham's newspaper ads guaranteeing 13.575 percent returns on first-year investments with his annuities.


When the investigator contacted Allianz Life Insurance Co., for which Neasham is authorized to sell insurance, the company informed her that it hadn't approved the ads.


At the time, Neasham also had a billboard outside of Lakeport advertising the 13.575 percent return.


The California Department of Insurance did not return a call by end of business Wednesday.


However, the agency's online license search showed Neasham's licenses to still be active, with both – one for accident and health and one for life insurance – set to expire next March.


The database cautions, however, that not all information is current, but it is not clear if licenses can be put on hold while prosecutions take place.


The state database shows no history of enforcement actions against Neasham, who is authorized to sell insurance for Guaranty Income Life Insurance, Lincoln National Life Insurance, London Pacific Life & Annuity, Transamerica Life Insurance, Equitrust Life Insurance, Aviva Life and Annuity and Allianz Life Insurance.


His booking document indicates he's set to appear in court Feb. 7.

 

[COInsguy]

Re: Agent Arrested for Selling Senior an Annuity

Lake County News | California - Businessman arrested on elder theft charge, special allegations

sooo....thoughts on whether should be arrested even with this in mind?

Sounds like an *** to yell at the investigators however stuff like this can slippery slope into agents being ARRESTED for any kind of suitability issues that may arise. Fines, Losing License, Chargebacks or a combination are what you have to understand as part of why you should be careful in your sales, but this is still seeming like an over-step on behalf of regulators.

 

[COInsguy]

Re: Agent Arrested for Selling Senior an Annuity

It is important to understand that California is a "hostile landscape" for agents who work with seniors.

They read this forum.

Tax Dollars HARD AT WORK! Get Paid to read an insurance forum.....Sounds like California to me!

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

Don't carriers have anything in place to flag an annuity app for an 83 year old that might be unsuitable?

I mean, can I write a 15 year 500K annuity on a 90 year old and the carrier doesn't even blink?

 

[VolAgent]

Re: Agent Arrested for Selling Senior an Annuity

Don't carriers have anything in place to flag an annuity app for an 83 year old that might be unsuitable?

I mean, can I write a 15 year 500K annuity on a 90 year old and the carrier doesn't even blink?

Remember, this is Allianz. I've never done business with them, but they did make quite a "reputation" of their own with annuities, surrender charges and annuitization. You would think they have learned their lesson, but maybe not?

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

The issue I see when selling annuities to older seniors is the liability never seem to go away. At any moment in time years down the road all of a sudden everyone gets amnesia and now you're forced to explain events that possibly happened 2, 3, 4 years ago.

As stated her quite a few times, a friend of mine was sued by Suntrust for selling an annuity when his client got amnesia.

This was an in house sale. Meaning, he worked for Suntrust behind a desk and the client in question walked through the door. He claims he was only authorized to use and in fact did use the company script.

About 18 months later he was called into the office, fired and then about a year later, sued. Suntrust's path of least resistance was to refund the client and go after the agent - and that should be enough to scare anyone selling annuities to seniors to really CYA.

I realize I'm only getting half the story. Highly unlikely he'd admit that he did anything wrong.

But selling these things to the elderly seems to be liability that never goes away.

I don't know what I'd do if I was selling an annuity to say an 80 year old. Probably video tape the entire presentation with his friends, family and notary present.

 

[VolAgent]

Re: Agent Arrested for Selling Senior an Annuity

But selling these things to the elderly seems to be liability that never goes away.

I don't know what I'd do if I was selling an annuity to say an 80 year old. Probably video tape the entire presentation with his friends, family and notary present.

Another product of our nanny state. No one is responsible for their own actions. Remember that if you get sued, blame the insurance company, your mortgage company, car loan company, gas company, etc. They held you hostgage and demanded you sell these products to pay them money.

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

It doesn't take anyone long in the field of sales to figure out one simple thing; buyers are liars. But the annuity industry has some blame to bear for allowing the word "annuities" to be synonymous with "scam."

My father recently had to take a withdrawal and was complaining that everything's 1%. He's 79 and extremely healthy. I couldn't even get the word "annuity" out of my mouth before he shot it down. He's one of those seniors addicted to Dateline and 60 Minutes.

And that recent story on that one annuity mill never should have happened - because that company should have been caught by the industry long before the media ever got wind of it.