This News Alert is based on an article by Jean Guccione titled "'Churn' Artists Favor Seniors -- as Victims" appearing in the Los Angeles Times, at www.latimes.com/news/local/la-me-onthelaw28nov28,1,3312566.story on November 28, 2003.
In 1988 Cecil Hyatt (now age 80) met David Alfred Tetley at a financial planning seminar for retirees from Lockheed Martin. Over the years, Mr. Hyatt (who now suffers from dementia) bought a number of annuities from Tetley.
Mr. Hyatt and ten others were victims of Tetley's scam involving "churning" of annuities -- Tetley repeatedly sold them new annuities to replace existing ones, resulting in more than $750,000 in surrender charge losses to these victims. Tetley profited each time he sold an annuity.
California Insurance Commissioner Garamendi investigated the case and referred it to the Los Angeles County District Attorney for prosecution. As a result, Tetley has now been sentenced to six years in prison and ordered to pay restitution to his victims.
For more information annuities and their inappropriate sale to older adults, see our www.annuitytruth.org web site.
December 2003
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