Declarations

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Lawsuits and Criminal Convictions

“We disagree with Mr. Castaneira’s version of the events alleged in this latest complaint. … The record regarding Mr. Castaneira’s prior lawsuits and criminal conviction speaks for itself.”

—South Dakota-based Midland National Life Insurance Co. issued a statement following the filing of a lawsuit against the company Eric Castaneira, who went to prison in for kidnapping a Midland executive in 1991, saying the most recent suit is just one of many Castaneira has filed against the company.

Castaneira’s lawsuit alleges in part that Midland has failed to abide by a settlement agreement that includes a $166,500 payment to Castaneira and language that they’ve settled “all disputes and differences.”

Castaneira was an independent insurance agent in Pennsylvania who contends Midland canceled his sales contract and withheld thousands of dollars in bonuses after he began questioning the company’s sales practices in 1989.

The lawsuit says Castaneira drove to Sioux Falls in September 1991, after the company ignored his communications, planning to commit suicide in Midland’s headquarters “to draw attention to Midland’s behavior.” Instead he kidnapped a company vice president who was released unharmed after eight hours. Castaneira surrendered four hours after that.

A Classic Advance Fee Scam

“This is a classic advance fee scam where consumers are enticed into paying upfront fees for a prize they never get in return. The twist here is the scammers are trying to fool consumers by using the good name of an insurance company.”

—Michigan Office of Financial and Insurance Regulation OFIR Ken Ross comments on an international mail fraud scheme that uses counterfeit checks with Allstate Insurance Co.’s name on them. Recipients are told that to receive a $250,000 prize, they must cash the check and then send $4,770.20 by Moneygram or Western Union to an address located in Tacoma, Wash. Consumers who cash the phony check could find themselves owing their bank more than $4,900.

The OFIR said one if its employees received one of the counterfeit checks. It was issued for $4,970.20 and came with a letter informing the recipient that they had won a $250,000 “Consumer’s Promotion Draw” for consumers who shop at a number of the nation’s major stores. The letter also explains the $4,970.20 check was issued to cover the “Non-Canadian Residential Tax” the consumer will have to pay to a tax agent. The consumer is also expected to pay $200 in insurance and delivery charges.

The individuals sending these letters and counterfeit checks have no affiliation with Allstate and are illegally using the company’s name, according to officials.

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