Missouri Secretary of State Files Cease and Desist Order

About 100 Missourians will be getting back money from an insurance company that mishandled funds. With more, KRMS Reporter Ashley Teague.

‘The Missouri Secretary of State Robin Carnahan announced that $574,000 will be returned to more than 100 investors who suffered losses after their savings were mishandled by a former Bankers Life and Casualty Company insurance agent, James Otto. Secretary of State Carnahan’s spokesperson Abe Rakov explains how these investors were scammed.’

“There was an insurance salesman working for Bankers Life and Casualty that talked clients into moving their money from wherever their money was located to annuities in Bankers Life. And he was not registered to sell investments,” said Rakov.

‘He also explains how Bankers Life and Casualty profited from the scam.’

“So it was the fact that they moved the money over and they received commissions off of selling it at their own company. And then a lot of people that they moved over were in securities that weren’t really in their best interest either.”

‘Rakov talks about how much money was moved to these annuities.’

“Overall he moved $7.1 million in investor money. It wasn’t lost money but that’s how much was moved from their normal securities into his insurance company’s annuities.”

‘Rakov said that $574,000 will be paid back to the investors.’

Carnahan has also filed a cease and desist order against Otto. The insurance agent has 30 days to respond. The Missouri securities division is also continuing its investigation of brokerage firms that opened accounts for Otto for his liquidation purposes.