Michigan Alleges $50 Million Fraud Involving 41 Agents

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.

Officials said they have identified at least 400 Michigan victims totaling more than $50 million in investment money.

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 a number of 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 says its investigation found these intertwined companies and individuals “severely harmed Michigan consumers through allegedly fraudulent real estate, alternative energy, hedge fund and short term loan investment scams.”

Also, 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 did receive alleged dividend checks, but a vast majority never had access to their funds, according to state officials.

“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.”

OFIR said it has handed the results of its investigation over to the law enforcement agencies.

Topics Fraud Agencies Michigan