Calif. Annuity Fraud Case Provides Lesson in Investment Risks

A recent annuity fraud lawsuit in California illustrates the danger that annuities can pose to people’s finances, especially when it comes senior citizens.

An insurance agent in Palm Desert was recently sentenced to more than nine years in prison and ordered to pay $3.4 million in restitution for an annuity scam.

The agent, John Slawinski, had convinced some victims 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.

Slawinski previously was a licensed life and health insurance agent until June 2014, when his license was revoked. The Department of Insurance started an investigation in 2012 after receiving complaints about Slawinski’s business practices involving the sale and surrender of annuity products.

The investigation ultimately revealed that Slawinski would have his victims sell him their legitimate annuities, telling them he would sell them better ones.

The victims then would write Slawinski a personal check and, instead of investing their money into another annuity, Slawinski would deposit those checks into his personal bank account. He never purchased new annuities for the victims, nor did he ever refund the victims’ money, prosecutors said.

Slawinski concealed his theft by giving the victims fraudulent financial statements and issuing minimum investment payments which lead them to believe their insurance investment and life savings 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.

Annuity scams like Slawinski’s, which target the elderly are a form of elder financial abuse. The victims can lose an important part of their savings late in life, which can be overwhelming for them. That’s why it is necessary to protect the seniors against these scams.

Annuities are not always a threat to consumers’ financial assets; they can bring financial security when they are well-structured and adapted to the customer’s needs. However, improper annuities can be a disaster and can tie up seniors’ funds for years or even decades, say annuities fraud lawyers.

Most of time, seniors are the target of annuities’ salesmen who are not scrupulous. Seniors are targeted because they are more vulnerable and often wealthier than the general population.

If you believe that you or a loved one have been the victim of annuity fraud, you have legal options. Please visit the  Annuity Fraud/Life Insurance 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.

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