Lubbock insurance agent arrested in scam targeting elderly residents Tuesday, Tuesday, June 14th 2016, 11:22 am EDT
By Amber Edwards, Digital Producer
Joseph Allen Gaines (Source: Lubbock County Detention Center) LUBBOCK, TX (KCBD) - The Texas Department of Insurance and the Lubbock Police Department arrested Joseph Allen Gaines on charges that he kept clients' money that was intended for annuities.
TDI investigators say most of Gaines's victims were over the age of 65 and seeking investments for retirement. Investigators say Gaines was selling what he claimed were annuities, but kept the money for himself.
Earlier this year, a 94-year-old woman's family called the insurance company to confirm her $700,000 and were told that she had no policy in her name, TDI and LPD began investigating Gaines.
TDI Sergeant Steve Richardson says it’s important for trusted family members to be involved when it comes to important financial decisions.
“We believe that Mr. Gaines had been a financial advisor for this woman’s family for decades,” Richardson said. “He took advantage of her trust and encouraged her to invest in a fraudulent annuity. We hate to see something like this happen, but when it does we need to act quickly to minimize the damage.”
Investigators are urging anyone who purchased annuities to call their insurance company – and not the agents who sold the policies -- to verify that they do have a policy and that the amounts match what they were promised. If there are any problems, the next call should be to TDI at 1-800-252-3439.
You can report suspected cases of insurance fraud to TDI by calling the Consumer Help Line at 1-800-252-3439 or by
visiting www.tdi.texas.gov/fraud/report.html.