Agent Arrested and Convicted for Selling an Annuity.

[Norwayguy]

Re: Agent Arrested for Selling Senior an Annuity

My thoughts exactly, getting arrested for an approved product? Sounds like someone trying to make a name for themselves. Unless this agent ACTUALLY embezzled money somewhere in this transaction ( which could be possible) being locked up for a improper sale seems a bit of an over reach.

I have a question...I know the carriers can and do limit annuities by age ie 0-80, 0-90 etc....my question is does that portion get reviewed and approved by the DOI as well....Did the DOI not only approve the product for sale but approve it for sale to 81-83 year olds?

 

[GreenSky]

Re: Agent Arrested for Selling Senior an Annuity

Poizner contantly is proving that he hates the entire industry. Maybe he's still pissed off that Meg Whitman beat him in the primary.

Rick

 

[bill3173]

Re: Agent Arrested for Selling Senior an Annuity

I can't believe this would not be a civil matter...The annuity was approved by the DOI for sale in that state...I would have to assume suitability paperwork was completed and filed on this case, I can't think of a carrier that would not require paperwork on an 81 year old.

Anyone who sells annuities knows that the paperwork is laborious and you restate everything half a dozen times. Unless signatures were forged or diminished mental capacity, this seems odd.

Of course, I generally walk away from any sale that doesn't seem quite right to me. Probably lose some money, but it's better than going to jail.

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

If all the agent did was take all 175K and put it into an annuity then regardless of whether or not it was a proper fit and even if she was deemed not mentally able to consent to the transaction that he got arrested should scare the living hell out of anyone selling annuities to seniors...especially over a certain age.

Children could want to file charges. Years later the seniors could want to file charges.

I can't see how in any way this is a criminal case and agree with Bill; barring forged signatures or pocking cash this is a very dangerous precedent.

 

[arnguy]

Re: Agent Arrested for Selling Senior an Annuity

I believe that the fact that the "...victim lacked the mental capacity to enter into this contract" is the issue here. What STI points put is what the agent should have done in this situation. However, since he did not use the money for his personal gain, although he was paid a commission, I fail to see where this rises to the level of embezzlement. I am sure that the insurance company will rescind the annuity contract and make her whole again while having the agent repay the commission to them. A gray area as to criminalty IMHO.

 

[Crabcake Johnny]

Re: Agent Arrested for Selling Senior an Annuity

I looked up embezzlement and this is one aspect:

Conversion: Embezzlement is a crime against ownership; that is, the owner's right to control the disposition and use of the property.[3] The conversion element requires a substantial interference with the true owner's property rights (unlike larceny, where the slightest movement of the property when accompanied by the intent to deprive one of the possession of the property permanently is sufficient).[4]

Under that definition, that this lady no longer had control of her "property" would be where they're using. And man...that's about as thin as it gets.

This agent needs an attorney who should shred this case apart.

 

[Fisher]

Re: Agent Arrested for Selling Senior an Annuity

Under that definition, that this lady no longer had control of her "property" would be where they're using. And man...that's about as thin as it gets.

By "no control" you'd be referring to a surrender charge, healthagent? Heck, she most likely paid a fee to cash out the CD, no? Thin indeed.

 

[DHK]

Re: Agent Arrested for Selling Senior an Annuity

He must've sold the annuity while still promoting the evil CSA designation - which automatically makes him a criminal.

Right? LOL!

 

[ShanHikari]

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.

 

[COInsguy]

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.

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!