Texas Agent Arrested In Annuity Scam

June 14--A Lubbock insurance agent was arrested in an annuity scam last month, and investigators are working to determine if there are other victims involved.

Joseph Allen Gaines was arrested on charges claiming he targeted elderly clients by keeping their money, which was to be placed toward the purchase of annuities, investigators with the Texas Department of Insurance and the Lubbock Police Department say.

TDI investigators found the victims, who were 65 and older, were seeking investments for retirement.

Keeping the money for himself, Gaines never turned the money over to insurance companies for the purchase of the policies, investigators say.

TDI Sgt. Steve Richardson emphasized the importance of trusted family members being involved in their loved one's important financial decisions.

LPD and TDI investigators were alerted to the crime when a 94-year-old woman's family called an insurance company to confirm her $700,000 investment, which did not exist.

"We believe that Mr. Gaines had been a financial advisor for this woman's family for decades," Richardson said in a statement. "He

took advantage of her trust and encouraged her to invest in a fraudulent annuity. We hate to see something like this

happen, but when it does we need to act quickly to minimize the damage."

Investigators urge anyone who purchased annuities to call their insurance company, not the selling agent, and verify the policy and the amounts promised.

If there is a problem with the policy, contact TDI at 1-800-252-3439.

TDI's investigators are certified peace officers who investigate fraud cases with the assistance of local law enforcement agencies.

For more information or to report a suspected case, call TDI or visit their website at www.tdi.texas.gov/fraud/report.html.

[email protected] -- 766-8722

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