Call Now For a Free Consultation:
(614) 502-6165

Insurance Agents Warned as Jail Time Results From Annuity Case Over Indexed Annuities Sold to Elderly

Insurance Agent’s Jail Time In Annuity Case Serves as Warning to Other Insurance Agents

While regulators and various state authorities continue to be disturbed by the sale of “indexed” annuities, insurance agents continue to sell them. After all, the marketing pitch is great (“guaranteed” principal protection), the commissions (often 12% or more) are too enticing to pass up, and regulators’ unease never really seemed to be an issue. That is, until last month, when Glenn Neasham, an independent insurance agent, was sentenced to 90 days in jail for selling just such an annuity to an 83-year-old woman who may have shown signs of dementia. The State of California alleged that Neasham, doing business as Glenn Neasham Insurance Agency, sold a $175,000 annuity to an 83-year-old woman who supposedly lacked the mental capacity to enter into the contract. The annuity’s purchase required her to withdraw her savings from a certificate of deposit, which investigators alleged was not in her best financial interest."Insurance agents or brokers who steal from vulnerable seniors will not get away with their shameful tricks," said Commissioner Poizner in a 2010 press release. "CDI investigators will continue working to track down any unscrupulous agent who preys on California's seniors." As expected, Neasham asserted in his defense that the woman seemed mentally competent when he sold her the annuity, and that he felt he had acted appropriately. It’s worth asking, however, how any insurance agent can say they “acted appropriately” when selling such a clearly inappropriate product to seniors, especially when dementia is one of the most common ailments in the elderly. (It currently affects four to five million Americans, and the numbers are growing.) Hopefully, the conviction against Neasham will serve as a warning to other insurance agents that they can be held responsible for selling complex annuities to people who do not understand the risks and downfalls of such products.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation

Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
6140 Parkland Blvd.,
Suite 330
Mayfield Heights, OH 44124
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
Follow Us
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram