Another Annuity Trial.

[Cornelius]

This just came in my email box.

Ex-Agent Faces Embezzlement, Burglary Charges for Annuity Sales - Top News - InsuranceNewsNet.com

 

[DHK]

Holy ****. The difference here is there's a DA with an aggressive campaign for re-election, and there was a lot of switching annuities... using the bonus of the new one to "offset" the surrender charge of the old one.

Elder abuse was the subject of a series of workshops Riverside County District Attorney Paul Zellerbach’s office sponsored in April to educate the community. Zellerbach is in a bitter fight for re-election this year and is campaigning under the slogan, “One Tough District Attorney!”

Zellerbach has been accused of knocking down his opponent’s signs, prompting the state attorney general to review whether to file criminal charges at the request of the Indio Police Department, according to local media. Police organizations have pulled their endorsements of Zellerbach’s candidacy and several of those organizations have called for Zellerbach’s resignation.

Zellerbach’s election prospects would benefit from what he would consider a victory against elder abuse.

The brief alleged Lewis committed “twisting” and caused seniors to lose more than $300,000 in surrender penalties. He was charged with 36 felony counts of willfully embezzling from an elder for an amount exceeding $950, grand theft in excess of $400 and burglary.

The prosecutor argued that the surrender penalties constituted embezzlement and theft,

and because Lewis did some of the transactions at the clients’ homes, he also committed burglary.

These are REAL stretches of the interpretation of the law.

Yes, there were over $300,000 in surrender charges. How much were the bonuses? Were they credited?

I think the CA DOI should step in and say "Hey! Dumb ass! You're not the regulator on these things... we are!"


And KRobby was questioning why I wanted to be so cautious about selling a B++ rated annuity. It's because I live in California, where all this crap can happen!

----------

Per the CA DOI, Alan S. Louis voluntarily surrendered his life license on 04/22/2010.

One would think there would be a statute of limitations in place. For securities, it's either 2 or 3 years (can't remember those details right now). Oh, just re-read that he filed for the warrant for arrest 2-3 days prior to statute of limitations expiring.

 

[Brian Anderson]

The MasterDex 10 strikes again. First the Glenn Neasham debacle and now this. What struck me was how Lewis admits he didn't understand it and says it wasn't adequately explained to agents.

 

[VolAgent]

The MasterDex 10 strikes again. First the Glenn Neasham debacle and now this. What struck me was how Lewis admits he didn't understand it and says it wasn't adequately explained to agents.

I'm sorry your honor. I didn't meant hurt my clients. I just didn't bother to research the product I was selling. It is all the mean wholesaler's fault!

I really didn't want those nasty commissions from North American. They made me take them!

 

[Newby]

The guy sold $30,000,000 in annuities over six years. He had to be making around 8% during those years with that production. That's $2,400,000 in commissions.

And he had to move in with his parents a couple years later?

Doesn't make sense.

 

[VolAgent]

The guy sold $30,000,000 in annuities over six years. He had to be making around 8% during those years with that production. That's $2,400,000 in commissions.

And he had to move in with his parents a couple years later?

Doesn't make sense.

That isn't surprising, it probably burned a hole in his pocket. He probably was living the high life until it all came crashing down.

I'd be shocked if this guy wasn't guilty of twisting and churning. But embezzlement, elder fraud, and burglary? That seems quite a stretch.

 

[KRobby]

And KRobby was questioning why I wanted to be so cautious about selling a B++ rated annuity. It's because I live in California, where all this crap can happen!

You're right, since ratings are so important maybe you should stick to the highly rated Allianz MasterDex 10.

 

[DHK]

Zing! (Okay, I'll give you that one!) lol

 

[bill3173]

I would like to see the average age of his clients. I don't think he got into all this mess writing people in their 50s and 60s.

 

[CALTCAgent]

The guy sold $30,000,000 in annuities over six years. He had to be making around 8% during those years with that production. That's $2,400,000 in commissions.

It said he worked for Family First from 2002 to 2005. They had living trusts that agents would review.

If the commission was 8% he probably made 2% during that time period. So maybe he made 600K, after taxes 400K. So over 7 years 57K a year.

Very average producer.

The volume looks like a lot because of the system.

Embezzlement, burglary, 20 to 40 years, absurd!