Ashley Milano  |  September 4, 2015

Category: Consumer News

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A former Southern California insurance agent was recently sentenced to nine years in prison for swindling 13 elderly clients out of their life savings through an annuity scam.

Palm Desert resident John Paul S., 60, pled guilty to six felonies: three counts of embezzlement from an elderly victim, two counts of burglary and one count of tax evasion.

He also agreed to pay more than $2.8 million in restitution to the victims, $261,667 to the California Department of Insurance, and $285,902 to the state’s Franchise Tax Board.

The California Department of Insurance launched an investigation after some of his victims reported he had persuaded them to surrender annuities and investment products with the promise of higher returns through new investments and conned other victims into giving him money to invest for them – neither of which he did.

Slawinski concealed the annuity scam by providing victims with phony financial statements, and by issuing small investment payments to convince them their investments were secure.

What is Annuity Fraud?

Annuity fraud takes place when the selling agent misrepresents facts when soliciting the purchase of an annuity or fails to properly disclose important facts about the investment.

There are as many types of annuity fraud as there are types of annuities. Although most of the recent abuse has involved variable annuities, other forms of annuities, such as fixed or indexed annuities, have also been the subject of abuse.

Annuities can only be legally sold by licensed insurance agents or by stockbrokers who are also insurance agents.

Elder Financial Abuse

Many seniors have worked all their lives, paid off their homes, and put away money for retirement, they have assets that make them a prime target for individuals that may seek to exploit them financially.

Elder financial abuse is a growing problem that occurs daily in every community. Financial abuse can drain elderly people of their life savings, leaving them vulnerable when there is a family emergency that require health care or long-term care. Illnesses such as dementia and Alzheimer’s often make it difficult for a person to ask for help when confronted with financial problems.

Agents can make substantial commissions on the sale of annuities. While the majority of those who sell annuities obey the laws, many elderly individuals have been taken advantage of by insurance agents who have manipulated them into purchasing annuities they don’t need for the agent’s financial gain.

If you believe that you or a loved one have been the victim of annuity fraud, you have legal options. Please visit the Life Insurance Annuities Fraud Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a seasoned annuity lawyer will contact you for a free, no-obligation consultation.

You will be guided through the litigation process with no out-of-pocket expenses or hidden fees. The annuity attorneys working this investigation do not get paid until you do.

Get a Free Life Insurance Claims/Annuity Fraud Lawsuit Review

If you or your loved one purchased a bonus annuity, life insurance policy or Medicaid qualified annuity and it did not turn out as promised, you may need to have an investment fraud lawyer review the policy, the payments, and the potential benefits. You may be surprised at what they find, and you may even qualify for financial compensation beyond what the policy promised.

Get a Free Case Evaluation Now

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