Kenneth Rossman, ‘Annuity King’ sidekick, avoids prison in fraud plea

Kenneth Rossman, who participated in a $6.3 million financial fraud, avoided jail time for his role in helping to convict self-styled "Annuity King" Phillip Roy Wasserman.

Judge Charlene Edwards Honeywell sentenced Rossman to five years probation Wednesday. In 2021, he pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of aiding and assisting fraud and false statements in a plea deal with the federal government.

Wasserman and Rossman are jointly responsible for restitution of $5.99 million, Honeywell ruled. The judge previously approved the forfeiture of Rossman's property up to $482,632, according to court documents.

In a presentencing report filed last week in a Tampa, Fla. federal court, Rossman – represented by federal public defenders – cited a bipolar disorder and that he is the "sole caregiver" of two special-needs sons in arguing for probation.

"While Mr. Rossman’s undiagnosed and untreated mental health disorder does not excuse his criminal conduct, it mitigates it," the report reads. "Since being placed on pretrial supervision, Mr. Rossman has learned how to appropriately manage his mental health through counseling and medication."

'100% innocent'

Wasserman continues to fight his conviction. Rossman's bipolar admission only strengthens his case for a new trial, Wasserman said. In an August 2021 motion, Wasserman's attorneys asked the court to compel Rossman to take a psychiatric exam before he testified. A judge rejected that motion.

"The government lied and cheated in my trial. I’m 100% innocent," Wasserman said via email. "The prosecutor has a history of doing this and they were caught now because of Rossman coming forward and stating he’s mentally ill."

Wasserman was convicted May 15 on nine felony counts. The three most serious – wire fraud, mail fraud and conspiracy to commit wire and mail fraud – all carry maximum sentences of 20 years. Wasserman is schedule for sentencing Sept. 6, although he has appeal motions pending. He faces a second trial on tax-evasion charges.

The government claims Wasserman, 66, and Rossman, 65, lied and concealed information to convince elderly victim-investors to put their money into Wasserman’s life insurance venture called, “FastLife.”

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.