Seniors were scammed when they attended living trust and life insurance seminars and later duped into investing in phony promissory notes that never panned out
SAN DIEGO – A sophisticated scheme of elder financial abuse involving over 10 elderly victims and three others scammed for more than $1.7 million ended with the arrest of a formerly licensed life insurance agent who offered securities in the form of promissory notes and never paid them when they came due. Glenn Martin III, 57, was arrested last Thursday on 29 felony counts of grand theft, including theft from an elder adult, making false statements in the sale of securities and tax evasion. Bail was set at $500,000.
The California Department of Insurance Investigation Division worked in tandem with the San Diego County District Attorney’s Office and Franchise Tax Board to secure Martin’s arrest. Martin, under the guise as a life insurance agent, held living trust and estate planning seminars soliciting senior citizens into purchasing annuities. In some cases, Martin, after gaining the trust of the seniors and securing their purchase of the annuities, told them at a later time that the annuity wasn’t doing very well and if they switched their funds in the form of a promissory note, the payoff would be a promising 20 percent over their investment. Martin allegedly used promissory notes to secure the investment money, but in some cases, never invested the money.
“Senior citizens are especially vulnerable to “get rich quick schemes” and dishonest sales tactics when unscrupulous agents outright lie about investment opportunities,” said Insurance Commissioner John Garamendi. “Taking advantage of a person’s retirement funds is as despicable as it gets, and my Department will continue to aggressively pursue, investigate and help prosecute individuals who seek to rip off our most vulnerable citizens’ hard-earned savings.”
Again this year, Commissioner Garamendi has sponsored legislation to help protect seniors from being ripped off by fraudulent insurance agents. Senate Bill 192 authored by Senator Jack Scott will require insurance companies and agents to develop and use “suitable standards” (or specific guidelines) to determine whether selling any annuity to a senior is appropriate. These standards will help to protect seniors from being sold annuities with no benefit in their lifetime.
“This con man preyed on one of the most vulnerable segments of society to support his lavish lifestyle,” said San Diego County District Attorney Bonnie M. Dumanis. “The California Department of Insurance and the Franchise Tax Board will join with our office to see that this predator is brought to justice.”
Martin used the “bogus” seminars and solicitations to dupe senior citizens into investing their money in the various schemes between 2001-2003. The life insurance and living trust seminars were held at such unsuspecting places as the San Marcos Library and Coco’s restaurants.
The scams materialized as the promissory notes came due and victims came forward to file formal complaints with the DA’s office. Glenn Martin also solicited friends and individuals he associated with in a professional capacity. Martin issued promissory notes in his name and the name of Franklin National Estate Group with personally guaranteed rates of return, up to 24 percent. Later, Martin augmented the promissory notes that stated lower rates of return with “Independent Contractor” agreements, wherein Franklin National Estate Group was listed as the Employer, and the investor was listed as the Independent Contractor. Martin has not repaid the promissory notes which have come due, nor has he paid investors the monies promised under the Independent Contractor agreements. The Franchise Tax Board also charged Martin with three tax evasion charges of failure to file taxes. To date, it is reported that the defendant has taken about $2 million from investors. Martin has re-paid a negligible amount, most of which has been prompted by investors filing civil suits.
The California Department of Insurance San Diego Investigation Unit is asking other victims who have been ripped off by Martin to contact the Department’s Investigation Fraud Hotline at 619-525-4092 before the statute of limitations runs out.
Helpful Tips to Protect Against Senior Financial Abuse:
- Check Out Your Agent and Company Fully Before Transacting Any Business or Exchanging Any Funds
- Never Be Pressured or Intimidated by an Agent
- Never Sign Anything You Don’t Understand
- Review Policies Carefully with a Lawyer or Family Member
- Beware of Free Seminars or Luncheons Targeting Seniors with “advice” on protecting your financial assets through living trusts, estate planning and life insurance.
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