Allianz Salesman Jailed for Selling an Annuity

What other product allows you to take ten percent of someone’s life savings?

“My honest opinion? I wouldn’t buy one of these, but I really want the commission that the insurance company is going to pay me if you buy one.” — The Vigilant Investor, p. 203

It’s a story that is sending shivers down the spines of annuity salesmen — long overdue shivers. A broker who sold an annuity to an 83-year-old woman was convicted of a criminal charge of felony-theft on the basis of that sale. He was sentenced to 90 days in jail. The sad thing is that the financial incentive to sell annuities is so strong that it might well overcome the reluctance to spend time in prison, unless, of course, other prosecutors step up and file similar charges. According to The Wall Street Journal story about the case: (more…)

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