‘Annuity King’ bid for a mistrial is denied as trial moves on to week 5

The trial of the self-styled "Annuity King" will continue into a fifth week after a Florida judge denied defendant Phillip Roy Wasserman's motion for a mistrial.

Wasserman is standing trial in Tampa, accused by the federal government of perpetrating a $6.3 million fraud via sales of life insurance and annuity products. The three most serious charges – wire fraud, mail fraud and conspiracy to commit wire and mail fraud – all carry maximum sentences of 20 years.

In an email exchange, Wasserman declined comment on the mistrial request. The government's case is expected to wrap up by Monday, Wasserman said. Judge Charlene Edwards Honeywell said the fraud trial, which began with jury selection April 3, is expected to last six to eight weeks, according to court documents.

"Among my witnesses will be a forensic certified public accountant who did a report that shows I absolutely did not use any investor funds for personal use," Wasserman wrote.

The government disagrees. Wasserman was initially indicted in June 2020, but the government filed a superseding indictment in November of that year outlining new charges.

In a Thursday order, Judge Honeywell approved a $33,615 invoice from WISS & Co. for "expert financial services" on behalf of Wasserman's defense. The judge initially approved a $25,000 budget for Wasserman to hire WISS, but indicated satisfaction that the company performed its work "in the most cost-effective manner," the order reads.

Rossman testifies

According to the final indictment, Wasserman, a former lawyer and licensed insurance agent, allegedly worked in tandem with Kenneth Rossman, a Florida certified public accountant and licensed insurance agent, to convince elderly investors to put their money into Wasserman’s new insurance venture, “FastLife.”

In doing so, the men made "false and fraudulent misrepresentations and concealed material information," said the U.S. Attorney's Office for the Middle District of Florida.

"Some victims were persuaded to liquidate traditional investments, such as annuities, and/or to borrow funds against existing life insurance policies to generate cash to invest in the venture," a news release reads. "These victims were not told about surrender fees and other costs associated with the liquidations, and Rossman prepared income tax returns for victim-investors in a manner designed to conceal negative personal tax consequences that resulted from the liquidations from both the victim-investors and the Internal Revenue Service."

In July 2021, Rossman accepted a plea deal. According to court documents, Rossman pleaded guilty to one count of  conspiracy to commit mail fraud and wire fraud, and one count of "aiding and assisting the preparation and filing of fraud and false tax returns." The two counts carry a maximum of eight years behind bars.

In exchange for the plea, Rossman "agrees to cooperate fully" with the government "in the investigation and prosecution of other persons, and to testify" during the fraud trial, court documents read.

Rossman took the stand Friday and testified for three days, according to court documents, concluding Tuesday. Wasserman made an oral request for a mistrial the following day, court documents say.

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.