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Stockbroker Jailed for Selling Annuity to 83 Year Old Woman

Stockbroker Jailed for Selling Annuity to 83 Year Old Woman

Stockbroker Jailed for Selling Annuity to 83 Year Old Woman 150 150 Rex Securities Law

The Wall Street Journal reports that California’s insurance commissioner had independent insurance agent Glenn Neasham arrested for selling a complex annuity to an 83 year old woman. The jury in Lake County, CA, found the lady had dementia and  convicted the broker of felony-theft and ordered him to spend 90 days in jail.

Steve Poizner,  the former insurance commissioner was quoted as saying agents “who steal from vulnerable seniors will not get away with their shameful tricks”.

We have warned investors to be wary when making annuity purchases for many years given the fact that there are often steep penalties if money is withdrawn early. Some annuities define “early” as a decade or more. In addition commissions on indexed annuities are very high, sometimes 12% or more.

In the case cited, the broker earned a $14,000 commission (8%) and the penalty to pull the money out of the annuity in the first year was 12.5%.

We are not aware of another case where the regulators have taken such a strong stance. Perhaps this will have some chilling effect on the sale of these products to the elderly, however you can’t ask too many questions about the suitability  of any annuity proposed to you by your broker.

If you have questions about the way your brokerage account is being handled or have unexplained losses in your stock market account, call to discuss your legal options

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

 

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