Articles Posted in Annuity

Boca Raton, West Palm Beach, Fort Lauderdale, Hollywood, Florida Annuity Fraud, Mismanagement and Twisting Litigation and Arbitration Attorney:

Annuity Basics:

An annuity is a contract in which an insurance company agrees to make a series of payments in return for a premium (or premiums) that you have paid. Many consumers buy annuities so that they will have a regular income after they retire. An annuity is an investment and shouldn’t be used to reach a short-term financial goal. Buying an annuity may or may not be right for you. Contact a licensed agent or broker to be sure an annuity is the right choice for your financial future. If you have questions regarding retirement planning, you should consult a reputable financial planner to make sure you are on target to meet your goals.

Annuity and Insurance Fraud and Misrepresentation – Elder Financial Abuse and Exploitation Litigation and Arbitration Attorney:

SEC Charges Four Insurance Agents in Securities Fraud Targeting Elderly Investors

The Securities and Exchange Commission recently announced charges against four insurance agents for unlawfully selling securities in what turned out to be a multi-million dollar offering fraud targeting elderly investors.

Equity Indexed Annuities – Boca Raton, Deerfield Beach, Lighthouse Point, Delray Beach and West Palm Beach, Florida Annuity Twisting and Fraud FINRA Arbitration and Litigation Attorney:

An equity indexed annuity is a fixed annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index.  The value of the index might be tied to a stock or other equity index.  One of the most commonly used indices is the Standard & Poors 500 Composite Stock Price Index, which is an equity index.  The value of any index varies from day to day and is not predictable.  When you buy an equity indexed annuity you own an insurance contract.  You are not buying shares of any stock index.

Please keep in mind that the above information is being provided for educational purposes only.  It is not designed to be complete in all material respects.  Thus, it should not be relied upon as providing legal or investment advice.  If you have any questions concerning the contents of this post, you should contract a qualified professional.

FAQ’s that should be asked to your insurance agent, account executive or company prior to considering the purchase, exchange or sale of a deferred annuity. 

There are a series of basic questions that you should ask your agent or company when considering deferred annuities.  This list is not designed to be complete in all material respects.  It is being provided as a general guide.  Thus, it should not be relied upon as legal or investment advice.

  • Is this a single premium or multiple premium contract?

South Florida, including Fort Lauderdale, Pompano Beach, Margate, Lighthouse Point, Deerfield Beach and Boca Raton Charitable Gift Fraud and Misrepresentation and Elder Abuse and Exploitation FINRA Arbitration and Litigation Attorney: 

Securities and Exchange Commission v. Richard K. Olive and Susan L. Olive, Civil Action No. 2:13-civ-14047 (S.D. Fla.); Securities and Exchange Commission v. William G. Reeves, Esq., Civ. No. 2:13-cv-14048 (S.D. Fla.)

Husband and Wife Agree to $2 Million Settlement in Florida-Based Charity Fraud Case

Boca Raton, Delray Beach, Lantana, Lake Worth, West Palm Beach and Jupiter, Palm City and Stuart Florida Senior, Elder and Retirement Financial Abuse and Probate FINRA Arbitration and Litigation Attorney:

FAQs – Annuity:

An annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums you have paid. Annuities are most often bought for future retirement income. Only an annuity can pay an income stream that can be guaranteed to last as long as you live.

Financial Elder Abuse and Elder Exploitation – Boca Raton, Delray Beach, West Palm Beach and Fort Lauderdale, Florida Litigation and Arbitration Attorney:

Florida Statute Section 415.1111 grants to vulnerable (elder) adults a cause of action as a result of financial and other types of abuse. It provides that a vulnerable adult who has been abused, neglected, or exploited as specified in the law has a cause of action against any perpetrator and may recover actual and punitive damages for such abuse, neglect, or exploitation. The action may be brought by the vulnerable adult, or that person’s guardian, by a person or organization acting on behalf of the vulnerable adult with the consent of that person or that person’s guardian, or by the personal representative of the estate of a deceased victim without regard to whether the cause of death resulted from the abuse, neglect, or exploitation. The action may be brought in any court of competent jurisdiction to enforce such action and to recover actual and punitive damages for any deprivation of or infringement on the rights of a vulnerable adult. A party who prevails in any such action may be entitled to recover reasonable attorney’s fees, costs of the action, and damages. The remedies provided in this section are in addition to and cumulative with other legal and administrative remedies available to a vulnerable adult.

As the elder population in Florida has increased, incidents of financial elder abuse has accelerated at an alarming rate. An area of financial elder abuse that has recently exploded is the twisting (unnecessary sale and purchase of annuities) of variable and fixed annuities.

South Florida Elder Abuse Insurance and Annuity Fraud and Misrepresentation Attorney Russell L. Forkey, Esq.

The Securities and Exchange Commission (SEC) recently charged a self-described institutional trader in Colorado with defrauding elderly investors into making purported investments in government-secured bonds as he used their money to pay his mortgage.

The SEC alleges that Gary C. Snisky of Longmont, Colo., primarily targeted retired annuity holders by using insurance agents to sell interests in his company Arete LLC, which posed as a safe and more profitable alternative to an annuity. Investors were told their funds would be used to purchase government-backed agency bonds at a discount, and Snisky as an institutional trader would use the bonds to engage in overnight banking sweeps. However, Snisky did not purchase bonds or conduct any such trading, and he misappropriated approximately $2.8 million of investor funds to pay commissions to his salespeople and make personal mortgage payments.

Florida Indexed Annuity Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney:

Prior to purchasing an indexed annuity, it is important that you understand various features contained in the annuity contract.  Some of these items are set forth below.  Please keep in mind that this information is being provided for educational purposes only.  It is not designed to be complete in all material respects.  Thus, it should not be relied upon as legal or investment advice.  If you you have any questions concerning the below information, you should contact a qualified professional.

What are some of the contract features of indexed annuities?

South Florida Indexed Annuity Fraud and Misrepresentation Litigation and FINRA Arbitration Attorney:

What is an indexed annuity?

An indexed annuity is a type of contract between you and an insurance company. During the accumulation period – when you make either a lump sum payment or a series of payments – the insurance company credits you with a return that is based on changes in a securities index, such as the S&P 500 Composite Stock Price Index. Indexed annuity contracts also provide that the contract value will be no less than a specified minimum, regardless of index performance. After the accumulation period, the insurance company will make periodic payments to you under the terms of your contract, unless you choose to receive your contract value in a lump sum.

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