Investigation finds deceptive sales, churning of annuities targeting postal workers

A former insurance producer from Missouri has agreed to a license revocation and is barred from working in the Iowa securities industry after what state officials described as preying on retired postal workers.

Iowa Insurance Division entered into a consent degree with Starrla Ramae Norman of Dexter, Missouri, according to a news release. She cannot conduct business in Iowa after an investigation "revealed a pattern of predatory financial practices targeting retired federal employees."

Norman was also ordered to pay $44,954.00 in restitution to an affected Iowa consumer and $10,000 to the State of Iowa to pay for its investigation and prosecution.

The investigation found Norman leveraged professional gatherings of postal workers to convince unsuspecting retirees to liquidate their federal Thrift Savings Plans, which contained securities, to fund fixed indexed annuities, which carried high commissions. One of the documented victims was from Creston.

Norman is accused of routinely falsified customer financial information on annuity applications, such as inflating clients' monthly incomes and net worth. She executed a scheme to churn existing contracts, convincing clients to buy nearly identical annuities to ones they already purchased. Norman also used digital signatures to apply consumer signatures remotely from Missouri while pretending to be in Iowa.

The release states Norman also illegally advised at least one consumer about liquidating specific securities in their retirement account despite not being a registered investment adviser or securities agent in Iowa.

The Iowa Insurance Fraud Bureau also investigated Norman's conduct, and she pled guilty to insurance fraud, a Class D felony, admitting to knowingly submitting an insurance application with false information on behalf of an Iowa client. Sentencing is scheduled for Sept. 4, according to the release.

"Protecting Iowa retirees from predatory schemes that jeopardize their hard-earned retirement savings remains a primary focus of this office," Iowa Insurance Commissioner Doug Ommen said in the release. "If you or a loved one have been pressured to liquidate your retirement accounts, or if you suspect that your financial agent has misled you about surrender fees, signatures, or replacements, please contact the Iowa Insurance Division immediately. Your call can help us stop these scams, recover lost funds, and protect other Iowans from falling victim to similar financial exploitation."

Make a report of unfair trade or misleading insurance practices by calling 515-654-6556.