Michigan insurance officials say they have identified 41 out of a possible 76 American Benefit Concepts (ABC) insurance agents responsible for selling fraudulent investment products in several multi-million dollar investment schemes in western Michigan. At least 400 Michigan victims and more than $50 million in investment money have been identified.
The Office of Financial and Insurance Regulation (OFIR) alleges that these licensed insurance agents violated the Michigan Uniform Securities Act and were not licensed to sell securities products in the state.
In August, the OFIR ordered Kalamazoo-based ABC and related companies and individuals to stop selling unregistered securities products. ABC President Jason Juberg and Vice President Matt Harper were identified as agents in OFIR’s August order.
OFIR said its investigation found the intertwined companies and individuals “severely harmed Michigan consumers through allegedly fraudulent real estate, alternative energy, hedge fund and short term loan investment scams.”
According to OFIR, ABC’s agents solicited senior investors at free lunch seminars, in-home presentations and through cold call leads. OFIR alleges that these insurance agents claimed their investments would pay annual returns of up to 12 percent. A few investors received alleged dividend checks, but the majority never had access to their funds.
“Unlicensed agents were pitching unregistered products at ‘free lunch seminars’ -with unwitting consumers paying the price,” OFIR Commissioner Ken Ross said. “There’s no such thing as a free lunch.”
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