I’ve known this case was in the works for some time, but I didn’t really think the outcome would be jail time for the defendant. It’s really quite shocking.
When I had this story forwarded to me yesterday, I was saddened. Why saddened? Sure, I feel bad for the advisor; I believe the story simply speaks to the unprofessionalism of the attorney who decided to prosecute this case. It makes all attorneys look bad and shows us how abusive the legal process can be (and how helpless a defendant can be).
Summary—an agent sells a Masterdex 10 (Allianz) annuity to an 83 year old. As it turns out, the client had some form of dementia (although the agent didn’t see signs of it and was not informed by the client or her relatives about her dementia).
Through Monday-morning quarterbacking and due to outside pressure, investigations ensued; and the agent was charged with a felony theft charge. This is ironic since he did not steal anything and since the annuity never lost money. Yes, there was a declining surrender charge but to be charged and convicted of theft is simply crazy.
When you read the facts of this case, if you know anything about annuity sales, you will not think them to be egregious in a manner that would lead to a civil suit let alone a criminal one. This advisor seemingly has had his life ruined by a criminal process that should have never taken place.
This is a bad facts, bad jury, and an overzealous prosecutor case that is hard to fathom. I’d like to tell you that we can learn a lot from this case, but I can’t think of much except to make sure you send your CYA letter after each annuity and life sale. I know that insurance companies have been watching this case and have instituted procedures to help prevent this in the future with phone interviews with clients over a certain age; but, unfortunately, that won’t help this agent.
To read a lengthy summary of this case, please click here.
http://enews.insurancemail.biz/article.aspx?id=331872&type=topnews
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