A network of insurance agents is under investigation for allegedly taking more than $1 million from 200 Southern California senior citizens, according to a Los Angeles Times report. The alleged scam involved the sale of nine-month promissory notes through a variety of companies.
Simi Valley seniors lost at least $580,000 according to the report. The agents reportedly cold-called seniors, asking to review their living trusts in order to see their assets. They then offered 10 to 15 percent returns returns over a nine-month period.
Some seniors received a few interest payments according to the paper, but none received all interest promised, nor their principal investment back. Most of the seniors involved invested their money in 1998 and 1999. In addition to investigating the agents, the state attorney general’s office is also investigating the companies involved.
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