Copyright held by The John Cooke Fraud Report. Reprint rights are granted with attribution to The John Cooke Fraud Report with a link to this website.
An elderly man decided to purchase annuities for his four grown daughters and one niece. Because his hands shook so much, he signed his name on the checks and asked his agent to fill in the rest of the information. Because of this, John Hancock received less than half of the $220,200 the old man paid. The agent pocketed the rest. The Cumberland County IFPU investigated, the agent was arrested and John Hancock made good on the stolen money.
Another agent, Carmen LaBate, took checks from elderly clients for annuity purchases and similarly diverted the checks. It happened at least 14 separate times and, in all, more than $180,000 was unaccounted for. The companies could not make it good because LaBate never turned anything over to them.
The IFPA has been actively investigating and prosecuting such cases, hopefully getting the message across to the few rotten agent apples in the barrel: Fraud Does Not Pay. The Allegheny, Lehigh, Montgomery and Philadelphia DA’s offices each arrested two insurance agents. The Cumberland County DA and the Attorney General’s Office each arrested one agent.
A Little Humor
A newly established lawyer, wanting to impress the first prospective client who had just come into his office, picked up the telephone and said, “I’m sorry, but I have a tremendous case load and won’t be able to look into this for at least a month.”
He then hung up, turned to the young man standing in his office and asked, “Now, what can I do for you, sir?”
“Nothing,” replied the man. “I’m just here to hook up your phone.”
© Copyright 1999 Alikim Media