An insurance advisor found guilty of money laundering and racketeering is likely to die in prison for the ultimate breach of trust – including setting up a dummy company to defraud a giant carrier.
Randall Petersen, 49, who operated under numerous aliases, stole money in the form of commissions and bonuses from Liberty National Insurance Company and American National Insurance Company.
Petersen posted job applications for a company he created, College Consultants of the Gulf Coast, and convinced hundreds of applicants to provide information for life insurance that he and his associates described as free job benefits.
Prosecutors argued convincingly that Petersen simply used the information from the job applicants to complete life insurance applications, which he submitted to Liberty National and American National.
Petersen received advance commissions from the companies, which included bonuses and as much as 130 per cent of the first year premiums.
Petersen let the policies lapse for nonpayment but not before he had obtained hundreds of thousands of dollars of commissions and bonuses. Eventually the companies realized the insureds were not employees.
That fraudulent strategy may lend weight to arguments in the States but also Canada that large upfront commissions are simply too great a temptation for some advisors. In Australia, regulators are now looking at limiting that upfront compensation to the Canadian equivalent of $1,200.
Petersen faces a maximum of 60 years state prison.
Randall Petersen, 49, who operated under numerous aliases, stole money in the form of commissions and bonuses from Liberty National Insurance Company and American National Insurance Company.
Petersen posted job applications for a company he created, College Consultants of the Gulf Coast, and convinced hundreds of applicants to provide information for life insurance that he and his associates described as free job benefits.
Prosecutors argued convincingly that Petersen simply used the information from the job applicants to complete life insurance applications, which he submitted to Liberty National and American National.
Petersen received advance commissions from the companies, which included bonuses and as much as 130 per cent of the first year premiums.
Petersen let the policies lapse for nonpayment but not before he had obtained hundreds of thousands of dollars of commissions and bonuses. Eventually the companies realized the insureds were not employees.
That fraudulent strategy may lend weight to arguments in the States but also Canada that large upfront commissions are simply too great a temptation for some advisors. In Australia, regulators are now looking at limiting that upfront compensation to the Canadian equivalent of $1,200.
Petersen faces a maximum of 60 years state prison.
