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An ex-MetLife broker faces federal charges that he committed annuity fraud, stealing thousands of dollars fromt least eight clients.
The charges also state that the broker used investor funds for his and his family’s benefit. As a result, the broker has been stripped of his ability to practice in New Jersey.
Kwen Young Chun pled guilty before U.S. District Judge Susan D. Wigenton in federal court to one count of mail fraud, according to the New Jersey Bureau of Securities. Two days after the guilty plea, Chun was revoked of his registration.
In total, Chun defrauded an untold number of clients out of almost $630,000. This fraud, including annuity fraud, occurred between April 2009 and May 2014.
According to bureau Chief Laura H. Posner, the investors that Chun victimized and took advantage of were vulnerable. In some cases, this meant they had limited English-speaking abilities. In other cases, investors simply had a misunderstanding of what Chun was going to do with their money.
Throughout the years of Chun’s fraudulent manipulation, the ex-broker unlawfully used at least nine customer accounts to deposit funds into his own accounts. He used the identity of one of his customers to perform this manipulation. Chun then allegedly spent the funds he illegally and deceitfully acquired on himself, his wife, and his daughter.
The manner in which Chun committed fraud varied, according to the bureau. In one case, he stole client funds that were intended to go toward purchasing an annuity. In another instance, he was supposed to invest one of his client’s life insurance policy loans. In all of these cases, Chun allegedly used his position of power to take advantage of investors who trusted him to protect their money and their investments.
Chun is free on $100,000 bond, but he faces up to 20 years in prison, as well as a hefty $250,000 fine.
What is an Annuity?
Annuities are insurance products used as investment and retirement plans that pay a steady stream of income. To put it simply, you make an investment in the annuity and the annuity pays you in one of two ways: over the course of your life (variable annuity), or in a lump sum payment (fixed annuity).
Sometimes, agents can defraud unsuspecting victims by promising to invest money or purchase an annuity, when in reality they are taking the money for themselves.
Annuity Fraud Lawsuits
Most people involved in annuity lawsuits are the elderly, and one-third of all cases of financial elder abuse involve annuities. Others who are easily targeted are people who speak limited English, and therefore may not have a perfect grasp of what a broker agent is doing with their money. In the last few years, instances of annuity fraud have increased, and so have annuity fraud lawsuits in response.
If you or someone you know were sold a life insurance policy or annuity that was somehow fraudulent and did not function as you were originally promised, you may be able to file a lawsuit or join a class action lawsuit.
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.
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3 thoughts onFormer MetLife Broker Charged with Annuity Fraud
I purchased a whole life policy and a term my Wells Fargo account was hacked into so I thought I lost the life insurance policy yet I still get information regarding my policy and it states the next payment to catch up I had a policy with my ex husband and was told he was the owner of the policy and if he continued to pay it it’s his than I find out my insurance broker was some how compensated from Wells Fargo yet it wasn’t through Wells Fargo
My agent from Metlife told me to close my 10 years annuity at 7% that I started in 2010 and put it in the index funds. He said you will make more money if you do this and you won’t have to pay the half percent rider fee that you are paying now because it’s automatically covered for free in the index funds.
My agent from Metlife told me to close my 10 years annuity at 7% that I started in 2010 and put it in the index funds. He said you will make more money if you do this and you won’t have to pay the half percent rider fee that you are paying now because it’s automatically covered for free in the index funds.