Colorado officials said Friday that nearly 1,400 people in Colorado will be part of a $70 million settlement from a Texas company accused of targeting American military personnel with a deceptive sales program.
In all, 92,000 consumers — including 70,000 military personnel — will receive cash or other benefits totaling $70 million.
Colorado Insurance Commissioner David Rivera said 1,388 Colorado consumers who purchased policies will be covered. He said they will receive from $100 to a prorated share of the remaining cash, depending on their policy details.
The Securities and Exchange Commission announced the settlement Thursday with the American-Amicable Life Insurance Company and its affiliates. The SEC said the Horizon Life product offered little or nothing to consumer investors, despite claims it would make them rich.
“Sales agents misled military personnel to believe they could earn $1 million in 20 years if they put their money into the investment fund,” according to the complaint. “At the same time, agents denigrated other investments, saying that mutual funds, bank savings accounts and government bonds did not make sense.”
The company neither acknowledged nor denied the SEC allegations, but will discontinue sales of Horizon Life. It also agreed to stop soliciting or selling any insurance product on military installations for five years.
The SEC complaint charged American-Amicable Life Insurance Co., Pioneer American Insurance Co., and Pioneer Security Life Insurance Co. — all based in Waco, Texas– with securities law violations.
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