California Man Steals $120K From Brother’s Annuity Policy, Authorities Say

Randall Smith, 64, of Oceanside, Calif., was convicted on one felony count of forgery after misusing his power of attorney to steal over $120,000 from his brother’s annuity policy.

Smith was sentenced to two years probation and ordered to pay $120,000 restitution to the beneficiaries of his now deceased brother and victim, Garrett Smith.

In July 2012, Garrett Smith, brother of Randall Smith, purchased a $1.2 million annuity policy. Garrett Smith had been diagnosed with early onset dementia earlier that year. In February 2013, Randall Smith obtained power of attorney for his brother because of Garrett Smith’s diagnosis.

An investigation by the Department of Insurance found that between April 2014 and June 2015 Randall Smith misappropriated over $120,000 from his brother’s annuity by making six separate withdrawals from the policy without his brother’s knowledge. Randall Smith withdrew the funds by impersonating his brother during telephone calls with the insurance company and forging the policy beneficiary’s signature on documents.

As a result of Randall Smith’s fraudulent actions, his brother incurred an additional loss of approximately $92,000 due to penalties and early withdrawal fees from the insurance company. Garrett Smith died on December 31, 2015, at the age of 56.

This case was prosecuted by the San Diego County District Attorney’s Office.