It's debatable if the fiduciary standard is 'higher' than suitability. But the better question might be, who's holding the bar?
By Steven A. Morelli
EDITOR’S NOTE: Readers have asked how they may send donations to Glenn Neasham. He has set up this fund: http://bit.ly/NeashamSupportFund. InsuranceNewsNet did not establish and is not administering this fund.
UPDATE: Visit this page for the original article and other Neasham coverage.
ORDER: Here is the state order. Please be aware Glenn's name is misspelled and the conviction date is incorrect. He was convicted Oct. 21. He was sentenced Feb. 29.
California revoked the insurance license of a producer who was convicted of theft for selling an annuity to an 83-year-old woman.
The state Department of Insurance issued its order of summary revocation on March 9, citing Glenn A. Neasham’s conviction of felony grand theft from an elder. Neasham’s motion for a new trial was denied on Feb. 29 in Superior Court in Lakeville and he was sentenced to 300 days in jail, which the judge reduced to 60 days. Neasham, 52, was convicted of theft on Oct. 21 for selling an indexed annuity to Fran Schuber in February 2008.
Neasham has a hearing set for March 20 to postpone serving jail time while he appeals his case to a higher court. He is scheduled to report to jail April 18. Neasham said the case has destroyed his business and his family is subsisting on food stamps. He cannot afford his attorney any longer and expects to qualify for a public defender.
In 2008, Schuber and her boyfriend, Lou Jochim, made an unsolicited visit to Neasham’s insurance office to get a better return on money from a CD that was coming due. Schuber bought a $175,000 Allianz MasterDex 10, CDs and left some cash for liquidity. The prosecutor argued that Schuber had dementia, did not understand the product and did not have access to her money because of the annuity’s terms. Neasham argued that he and his assistants did not see any signs of dementia and that the annuity was the best product for Schuber’s needs.
Click here for the original article on the case.
Click here for a timeline.
Steven A. Morelli is editor-in-chief for InsuranceNewsNet. He has more than 25 years of experience as a reporter and editor for newspapers, magazines and insurance periodicals. He was also vice president of communications for an insurance agents’ association. Steve can be reached at [email protected].
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