Agents Arrested for Pocketing 700k in Annuity Funds
- May 08, 2018
Insurance agent Michael Wolf ̶ in sheep's clothing as he victimizes dependent adult
SAN DIEGO, CA -- Licensed insurance agent Michael David Wolf, 59, of Moorpark and Randall Keith Smith, 60, of Oceanside were arrested by Department of Insurance detectives today on 16 felony counts including grand theft, forgery, and caretaker theft, for allegedly stealing more than $700,000 from an annuity policy that Wolf sold to a dependent adult victim.
"It is simply reprehensible to know a small number of agents use their position of trust to prey upon trusting and vulnerable populations such as dependent adults," said Insurance Commissioner Dave Jones. "I remain committed to making sure Californians are protected from agents and others who take advantage of trusting consumers to earn a quick buck. We will continue to investigate insurance fraud and enforce a zero tolerance policy for anyone committing fraud." According to department investigators, Wolf sold a $1.2 million annuity policy to a dependent adult who had been diagnosed with early onset dementia six months prior. Randall Smith was related to, and responsible for the care of the victim, when he and Wolf conspired to defraud the victim to the tune of $700,000 by making six withdrawals from the annuity.
Smith impersonated the victim during telephone calls with insurance company representatives and forged the beneficiary's signature on policy documents. Wolf called the insurance company over 14 times to assist Smith in illegally obtaining the withdrawals. As a result of Wolf and Smith's actions, the victim lost an additional $92,000 for penalties and early withdrawal fees.
The department suspended Wolf's insurance license. This case is being prosecuted by the San Diego County District Attorney's Office.