Although the vast majority of life insurance agents are honest, hard-working individuals, there are exceptions. One of the most shocking aspects of life insurance or annuity fraud is how the financial predator takes advantage of those who placed their trust in them in the first place.
Life insurance and annuity fraud involves unscrupulous agents who sell unsuitable annuities, usually to elderly victims, in order to obtain the large commission associated with these products. For example, using high-pressure sales tactics, an agent may convince a 70-year-old client to purchase an annuity that will not mature for 20 years. Often times, to accomplish the sale, the agent will convince the vulnerable client to cash in an existing annuity, leaving the elderly client not only with a worthless annuity, but also subjecting the client to penalties and fees for cashing in the existing annuity early.
The District Attorney's Office has specially trained personnel to investigate and prosecute those who are committing life insurance and annunities fraud.