Massive fraud, ruined hundreds of franchisees, caused banks to fail,and they are just going to get a fine and be banned from holding certain positions, with no admission of guilt? Why are they not going to jail for long prison terms? I’d think at least 15 years would be appropriate.
I am sure there will be criminal charges filed. The SEC can only seek civil charges. This is only the beginning. Too bad they hurt so many people before they got caught! I have been fighting them since 2006 and have gone through my entire savings to defend myself. They will get what is coming to them, justice will be served and then they will serve (time). I hope it is long enough so that they cannot enjoy the billions that they stole from us!
Join a group such as a Franchise or a Cluster group it a very good idea as it helps the small to midsize agency in a number of different ways, however you need to do your due dilligence. One way to do this is contacting principals of at least 3 different agencies within each organization, if not more. I would not recommend talking to the agencies that are recommended by any of these organizations, as you may get biased feedback. In addition to talking to existing members, you may also want to:
Check out the licensing page on the states they do business in. You can find out with whom they are appointed with and any other information that may be helpful to you. In most states, you can also see a list of license appointees.
Do a Google search and find out what is written about the organization online. You may find articles in insurance publications, information on an insurance forum, or be able to locate an agency member’s website.
Talk to carrier representatives. They often know of the groups in your area and can make recommendations to you
These were the quinticential story tellers peddling a story that was too good to be true. And boy, was it ever. The never made money from insurance operations, only the constant cycle of buying and franchising. It had to end sometime. Too bad many honest family business were scammed by it. Why are these guys not in jail??
Another thing that caused this scheme to fail was the quality of franchisee they acquired. From an industry vantage point I watched as non-standard auto agents in Texas that were barely surviving hand to mouth flocked to the promise of salvation in the form of a franchise buy-out payment that was essentially a loan they could not pay back. The entire concept becomes flawed where there is not enough due diligence on BOTH sides. There is a reason that INDEPENDENT agents do well and can. Not everyone needs to work for some group, corporation or government. Bigger is not always better. Ask Enron.
I was knee deep in negotiations with them in purchasing 3 of their company owned agencies. Our deal fell through a few weeks before the bankruptcy was announced. It was going to be a cash deal. Boy , that was a close one.
These guys were swindlers for sure and I feel sorry for the people who felt the franchise fee was a valuable proposition. I’ve been in the business for a long time and when I heard what they were offering, I thought to myself, who would pay that large of a fee just to open an office and gain some markets? You could go independent and work with MGAs until you got big enough for direct appointments, or start a captive agency until you gained some clientele and went independent down the road. I think at the time the franchise fee we like $125k. Ridiculous. Just another scheme and it had to come to end sometime. Sorry for the folks who lost money.
I bought a Brooke Franchise in 2005 went to the training got them to finance it it looked great on paper but after the advance went away the money I made on commissions went to expenses for Brooke and the loan payments. Nothing left over. 7 months later I asked them to sell it which was part of the deal.. and they were able in 2007 to get someone in Illinois to buy it for $60000 more than me and I actually made a profit. Unfortunately they filed bk a year later and I feel sorry for people like the man who bought mine that were duped. Im just glad I got out before I realized I as duped.
It’s about time, is all I have to say! I too bought into this franchise at $125,000. franchise cost with an established agency and was looking to grow my book. Instead I lost EVERYTHING I fought so hard to get in the first place. I had many years experience in the insurance field, and backed out of this 2 times before I had them change some of the contract that I didnt agree with. I lasted 7 months when I saw the writing on the wall. I know now, I will never see the money they owe me after selling my agency for $165,000. and my long time customers accounts that I never saw another penny commission on!
These people are crooks! This is a mere slap on the wrist. You can bet they have money hidden offshore somewhere. DB Indemnity? Check it out! A little late SEC! You were notified while these scumbags were in the mist of raping agents and didn’t do a damn thing! In fact, all of the regulatory agencies turn a blind eye to this operation. DOI’s across the US were made aware of the issues surrounding Brookes’ operation but because the (and I quote) “the consumer wasn’t effected – nothing we can do”. Louisiana DOI sent an independent auditor – found nothing? Did he see the ‘other set of books, incompetence or bought? Maybe all of the above?
These people are crooks! This is a mere slap on the wrist. You can bet they have money hidden offshore somewhere. DB Indemnity? Check it out! A little late SEC! You were notified while these scumbags were in the mist of raping agents and didn’t do a damn thing! In fact, all of the regulatory agencies turn a blind eye to this operation. DOI’s across the US were made aware of the issues surrounding Brookes’ operation but because the (and I quote) “the consumer wasn’t effected – nothing we can do”. The independent auditor from the Louisiana Dept of Insurance that investigated in 2006/07 was either incompetent, given the ‘other’ set of books or was paid off!
I worked for Brooke as a State Manager until I figured out what a scam it was. I tried to tell the agents with Brooke what a ripoff it was until Brooke came after me with a law suit threat.
I can not believe they would only have to pay that little amount, I have settled and had to pay that much to keep what I have worked so hard for that they stole from me. Wow if it was one of us we would be in jail for sure. They need to be paying all of us the money, not to the SEC.
I worked at an agency that was purchased from Brooke into their franchise and later resold where I worked for a family running the agencies they kept purchasing from Brooke until Brooke lies led them into bankruptcy. I also was the NV area manager for Brooke Corp directly back in 2002. Everything I was ever presented with pertaining to commissions to the local agents was with out a doubt confusing and I now see that I was right they are a big scam! You could not reconcile the statements that showed commissions because they kept all of the master statements and only provided their franchisees their rendering. I hope they all get what is coming to them-they ruined so many lives!
Yep, I used to be a Brooke agent. I thought it was a scam right after signing their stupid contracts. When I remitted premium payments to their system, I sent them a receipt. BUT they would still continue charging me, even though I already deposited the money into their account and sent them proof! I sent receipt after receipt and they never corrected the problem. I got out lucky, maybe $5-$10,000 loss of commissions. I had a trajedy that occurred and I begged the area manager to let me out of the deal, or sell the agency and he did.
I’m surprised too these guys got off so lucky. When I was in Overland Park one day, I remember seeing a German Bank “investing” 150 million. That money went Poof! The thing is that it just wasn’t this bank; they had other HUGE “investors”. By my calculations, those guys stole more than 1 Billion dollars (and ruined a lot of lives too.)
I worked for Brooke Insurance and left in 2004. when I left, they kept my last two paychecks which totaled $1600.00 take home. I have been trying to get ahold of them, but to no avail. What a big rip off. If I had known that I was working for free, I would have gone elsewhere.
Massive fraud, ruined hundreds of franchisees, caused banks to fail,and they are just going to get a fine and be banned from holding certain positions, with no admission of guilt? Why are they not going to jail for long prison terms? I’d think at least 15 years would be appropriate.
I am sure there will be criminal charges filed. The SEC can only seek civil charges. This is only the beginning. Too bad they hurt so many people before they got caught! I have been fighting them since 2006 and have gone through my entire savings to defend myself. They will get what is coming to them, justice will be served and then they will serve (time). I hope it is long enough so that they cannot enjoy the billions that they stole from us!
Criminal time like all the thiefs in banking and the financial industry over the last few years?
Join a group such as a Franchise or a Cluster group it a very good idea as it helps the small to midsize agency in a number of different ways, however you need to do your due dilligence. One way to do this is contacting principals of at least 3 different agencies within each organization, if not more. I would not recommend talking to the agencies that are recommended by any of these organizations, as you may get biased feedback. In addition to talking to existing members, you may also want to:
Check out the licensing page on the states they do business in. You can find out with whom they are appointed with and any other information that may be helpful to you. In most states, you can also see a list of license appointees.
Do a Google search and find out what is written about the organization online. You may find articles in insurance publications, information on an insurance forum, or be able to locate an agency member’s website.
Talk to carrier representatives. They often know of the groups in your area and can make recommendations to you
These were the quinticential story tellers peddling a story that was too good to be true. And boy, was it ever. The never made money from insurance operations, only the constant cycle of buying and franchising. It had to end sometime. Too bad many honest family business were scammed by it. Why are these guys not in jail??
Another thing that caused this scheme to fail was the quality of franchisee they acquired. From an industry vantage point I watched as non-standard auto agents in Texas that were barely surviving hand to mouth flocked to the promise of salvation in the form of a franchise buy-out payment that was essentially a loan they could not pay back. The entire concept becomes flawed where there is not enough due diligence on BOTH sides. There is a reason that INDEPENDENT agents do well and can. Not everyone needs to work for some group, corporation or government. Bigger is not always better. Ask Enron.
These people have ruined hundreds of lives forever!
Throw the bums in jail where they belong!
It would be such a shame for these crooks to just pay fines from the money thry stole anyway. They have ruined mutitudes of lives and families.
They need jail time!!!
I spent almost that much just keeping the doors open and defending myself against the mess they created for me.
They are paying these fines with the money they stole. It’s not justice.
They need to do jail time!!
I was knee deep in negotiations with them in purchasing 3 of their company owned agencies. Our deal fell through a few weeks before the bankruptcy was announced. It was going to be a cash deal. Boy , that was a close one.
Judicial hammer time with no slammer time?
What’s up? This is better than stealing.
These guys were swindlers for sure and I feel sorry for the people who felt the franchise fee was a valuable proposition. I’ve been in the business for a long time and when I heard what they were offering, I thought to myself, who would pay that large of a fee just to open an office and gain some markets? You could go independent and work with MGAs until you got big enough for direct appointments, or start a captive agency until you gained some clientele and went independent down the road. I think at the time the franchise fee we like $125k. Ridiculous. Just another scheme and it had to come to end sometime. Sorry for the folks who lost money.
I bought a Brooke Franchise in 2005 went to the training got them to finance it it looked great on paper but after the advance went away the money I made on commissions went to expenses for Brooke and the loan payments. Nothing left over. 7 months later I asked them to sell it which was part of the deal.. and they were able in 2007 to get someone in Illinois to buy it for $60000 more than me and I actually made a profit. Unfortunately they filed bk a year later and I feel sorry for people like the man who bought mine that were duped. Im just glad I got out before I realized I as duped.
It’s about time, is all I have to say! I too bought into this franchise at $125,000. franchise cost with an established agency and was looking to grow my book. Instead I lost EVERYTHING I fought so hard to get in the first place. I had many years experience in the insurance field, and backed out of this 2 times before I had them change some of the contract that I didnt agree with. I lasted 7 months when I saw the writing on the wall. I know now, I will never see the money they owe me after selling my agency for $165,000. and my long time customers accounts that I never saw another penny commission on!
These people are crooks! This is a mere slap on the wrist. You can bet they have money hidden offshore somewhere. DB Indemnity? Check it out! A little late SEC! You were notified while these scumbags were in the mist of raping agents and didn’t do a damn thing! In fact, all of the regulatory agencies turn a blind eye to this operation. DOI’s across the US were made aware of the issues surrounding Brookes’ operation but because the (and I quote) “the consumer wasn’t effected – nothing we can do”. Louisiana DOI sent an independent auditor – found nothing? Did he see the ‘other set of books, incompetence or bought? Maybe all of the above?
These people are crooks! This is a mere slap on the wrist. You can bet they have money hidden offshore somewhere. DB Indemnity? Check it out! A little late SEC! You were notified while these scumbags were in the mist of raping agents and didn’t do a damn thing! In fact, all of the regulatory agencies turn a blind eye to this operation. DOI’s across the US were made aware of the issues surrounding Brookes’ operation but because the (and I quote) “the consumer wasn’t effected – nothing we can do”. The independent auditor from the Louisiana Dept of Insurance that investigated in 2006/07 was either incompetent, given the ‘other’ set of books or was paid off!
I worked for Brooke as a State Manager until I figured out what a scam it was. I tried to tell the agents with Brooke what a ripoff it was until Brooke came after me with a law suit threat.
The Texas State manager certainly didnt “try to tell any agents” that I am aware of! He defended them till the very end.
Orr and his ilk need to rot in prison!!!
I can not believe they would only have to pay that little amount, I have settled and had to pay that much to keep what I have worked so hard for that they stole from me. Wow if it was one of us we would be in jail for sure. They need to be paying all of us the money, not to the SEC.
I worked at an agency that was purchased from Brooke into their franchise and later resold where I worked for a family running the agencies they kept purchasing from Brooke until Brooke lies led them into bankruptcy. I also was the NV area manager for Brooke Corp directly back in 2002. Everything I was ever presented with pertaining to commissions to the local agents was with out a doubt confusing and I now see that I was right they are a big scam! You could not reconcile the statements that showed commissions because they kept all of the master statements and only provided their franchisees their rendering. I hope they all get what is coming to them-they ruined so many lives!
Yep, I used to be a Brooke agent. I thought it was a scam right after signing their stupid contracts. When I remitted premium payments to their system, I sent them a receipt. BUT they would still continue charging me, even though I already deposited the money into their account and sent them proof! I sent receipt after receipt and they never corrected the problem. I got out lucky, maybe $5-$10,000 loss of commissions. I had a trajedy that occurred and I begged the area manager to let me out of the deal, or sell the agency and he did.
I’m surprised too these guys got off so lucky. When I was in Overland Park one day, I remember seeing a German Bank “investing” 150 million. That money went Poof! The thing is that it just wasn’t this bank; they had other HUGE “investors”. By my calculations, those guys stole more than 1 Billion dollars (and ruined a lot of lives too.)
I worked for Brooke Insurance and left in 2004. when I left, they kept my last two paychecks which totaled $1600.00 take home. I have been trying to get ahold of them, but to no avail. What a big rip off. If I had known that I was working for free, I would have gone elsewhere.