Securities Lawyer Blog | Victim of Fraud?

TAG | life insurance fraud lawyer

Nov/12

29

Jacksonville, FL, Rep Suspended and Fined for Insurance Scam

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, November, 2012.”

Evan Coley Eggers (CRD #5205969, Registered Representative, Jacksonville, Florida)

fined $5,000 and suspended from association with any FINRA member in any capacity for six months. Without admitting or denying the findings, Eggers consented to the described sanctions and to the entry of findings that
he made premium payments for his customers’ life insurance policies, using his personal funds to make the payments.

FINRA’s findings stated that each payment was submitted to his member firm via a money order, a practice forbidden by company policy. On each money order, Eggers falsified the customer’s signature. On a couple of occasions, Eggers falsified the customer’s signature to reduce the value of a life insurance policy.

The FINRA findings also stated that all insurance policies at issue were less than one year old. By continuing payment of the premiums, all policies remained active through a period of 13 months, thus qualifying Eggers for potential remuneration.

The suspension is in effect from October 1, 2012, through March 31, 2013. (FINRA Case #2011026438701)

If you or a family member have become alleged victims of annuity or insurance fraud, contact an attorney at Soreide Law Group for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552, or visit http://www.securitieslawyer.com.
Soreide Law Group, PLLC, representing Insurance Fraud Victims in Federal Court, State Court, and before the Financial Industry Regulatory Authority (“FINRA”).

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Oct/11

20

Clyde Benninghoff, Amelia Island, FL, Barred by FINRA

Comments off · Posted by Securities Lawyer in FINRA

Clyde Allen Benninghoff (CRD #18463, Registered Principal, Amelia Island, Florida)
 
submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the
findings, Benninghoff consented to the described sanction and to the entry of findings
that he facilitated securities investments away from his member firm.
 
These findings stated that individuals, who were not customers of Benninghoff’s firm, invested a total of $1,560,531.80 in a secured premium finance plan, which purported to promise a 12 percent return on an accompanying promissory note. The findings also stated that the secured premium finance plan was marketed as an investment that included financing for premiums on life insurance policies. The findings also included that Benninghoff wrote the life insurance policies through his firm’s life insurance company affiliate. FINRA found that the investments were not made through Benninghoff’s firm and were unknown to the firm.
 
Also, FINRA found that Benninghoff did not provide written notice to, or obtain
approval from, his firm prior to facilitating the investments. In addition, FINRA determined that Benninghoff failed to appear for a FINRA on-the-record interview. (FINRA Case #2009019487201)
 
This article was obtained on FINRA’s website listed under ‘Disciplinary Actions’ October, 2011.
 If you or a family member have become alleged victims of life insurance fraud, contact an insurance fraud attorney for a free consultation on how to recover your investment losses.  To speak with an attorney, call 888-760-6552, or visit securitieslawyer.com.  We stand up and fight for the rights of consumers. Soreide Law Group, PLLC, representing Insurance Fraud Victims in Federal Court, State Court and before the Financial Industry Regulatory Authority (“FINRA”).

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Oct/11

10

Life Settlements Fraud Get Long Jail Sentences For Two Scammers

Comments off · Posted by Securities Lawyer in FINRA

Two men from Houston, Texas, have been sentenced to spend more than 45 years in prison for their role in a massive life settlements fraud scheme writes Darla Mercado in an October 7, 2011, article in InvestmentNews.com.

Christian Allmendinger, the co-founder and vice president of A&O Resource Management Ltd., and Adley H. Abdulwahab, a hedge fund manager and part owner of A&O, were sentenced to 45 years and 60 years in federal prison, respectively, on Sept. 27 and 28 in the U.S. District Court in Richmond, Va. The charges against the two also includes conspiracy to commit money laundering, securities fraud and mail fraud.

This case dates back to 2004, when Mr. Allmendinger and another man founded A&O, according to the U.S. attorney’s office in Richmond and the Justice Department.

Ms. Mercado writes that the firm offered individual investors whole and fractionalized interests in so-called bonded life settlements, which were supposedly backed against longevity risk with a reinsurance bond. These bonds were positioned as fixed-maturity investments with a term of four to seven years and marketed as providing a guaranteed minimum compounded annual rate of return of 10% to 12%.

As many as 800 investors, most of them elderly, bought up the investments, and A&O raked in some $100 million in clients’ dollars.

It was reported in the InvestmentNews.com article that Mr. Abdulwahab, who eventually became a partial owner of A&O, entered the picture when his marketing company, CA Houston Investment Center, or HIC, and independent insurance agents who weren’t securities licensed began selling the investments, according to the suit. A&O paid HIC and the agents a commission of 10% of each bonded life settlement purchase, authorities said.

Concerned that the firm was offering unregistered securities, securities and insurance regulators became suspicious in 2006. Federal enforcement agencies said the men set up a phony series of sales of A&O itself in 2007 to place greater distance between themselves and regulators’ scrutiny of the firm. The transactions ended Mr. Allmendinger’s and Mr. Abdulwahab’s ownership interests in A&O, according to law enforcement agencies.

It was reported that A&O went into bankruptcy in September 2009, due to failure to pay down the premiums on its underlying insurance policies.

Mr. Abdulwahab filed an appeal of the sentence last week, and Mr. Allmendinger also will appeal the sentence.

If you or a family member have become alleged victims of life settlement fraud, contact an insurance fraud attorney for a free consultation on how to recover your investment losses.  To speak with an attorney, call 888-760-6552, or visit securitieslawyer.com. 

We stand up and fight for the rights of consumers. Soreide Law Group, PLLC, representing Insurance Fraud Victims in Federal Court, State Court and before the Financial Industry Regulatory Authority (“FINRA”).

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