A Tennessee insurance agency operator has been fined $187,000 in civil penalties and had his producer’s licensed revoked for defrauding clients, according to the Tennessee Department of Commerce & Insurance (TDCI).
The disciplinary actions were the latest moves taken to protect consumers who were clients of John Oscar Wilson III of Antioch, Tenn., a former agency operator in Brentwood. Wilson is currently serving 52 months in prison after he was found to have defrauded five insurance clients, including many instances of forging client signatures to insurance-related documents, and the misappropriation of their monies, TDCI said.
In 2015, TDCI summarily suspended Wilson’s insurance producer’s license because the continuation of his license was found to be hazardous to the public welfare. In 2016, Wilson pleaded guilty in federal court to two counts of wire fraud in connection with a fraudulent insurance/investment scheme.
Last year, Wilson was sentenced to 52 months in prison, followed by three years of supervised release for defrauding his clients and insurance agencies out of more than $800,000. Wilson was also ordered to pay $841,000 in restitution. Wilson is currently imprisoned in a federal penitentiary in Kentucky.
“At first blush, these additional civil penalties and the license revocation might seem unnecessary given Wilson’s guilty plea and his imprisonment, but, in fact, they are necessary steps to protect consumers and fully impose justice on behalf of Wilson’s victims, while sending a message that TDCI will not stand for such actions in our marketplace,” said TDCI Assistant Commissioner Michael Humphreys. “That said, and because the victims come first, these penalties will only be collected after Wilson makes good on his ordered restitution. We urge Tennessee insurance consumers to turn to us if they ever have questions or suspicions about their investments or insurance policies.”
TDCI said its investigators found Wilson defrauded his clients, many of whom were elderly or vulnerable, in at least three different ways. In order to be paid commissions as the owner and operator of Preserve Financial Group (PFG), Wilson would advise clients to cash in their tax-deferrable investments and purchase multiple insurance products – though he would not disclose the tax or financial penalties for doing so.
Wilson then convinced some clients to surrender insurance policies or annuities to him for investment in another insurance policy or annuity. Instead of investing the money, however, TDCI said Wilson deceived his clients and would deposit the funds into the PFG bank account he controlled where he could use the funds for his own benefit. Finally, Wilson convinced some clients to surrender insurance policies or annuities by deceiving clients into believing they were investing in PFG by purchasing stock in the company. In truth, there was no such stock and, instead, the money was deposited into the PFG bank account, which was then used for Wilson’s own personal benefit. Wilson used a radio program entitled “The Retirement Solutions Show” to attract retirees to invest.
The Department’s Initial Order imposing the above sanctions against Wilson in this matter became a Final Order on March 1, 2018.
Source: Tennessee Department of Commerce & Insurance
Topics Tennessee
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