Ohio High Court, Attorney General Help Seniors Targeted by Annuity Schemes (Ohio, USA)

Ohio high court, attorney general help Ohio seniors targeted by annuity schemes, reverse mortgages

October 14, 2009

Columbus Government Examiner

By John Michael Spinelli

With over 1.5 million Ohio residents 65-years old and older to prey on, the Ohio Supreme Court and Attorney General Richard Cordray are coming down hard on those whose business model is based on either misleading vulnerable seniors into buying ill advised or bogus annuity schemes or selling them on expensive reverse mortgages as a way to tap the equity in their homes to make ends when life spans out distance savings.

Ohio court deals big fines to two predator companies 

The news Wednesday from the Supreme Court of Ohio, that it has ruled unanimously that two out of state companies will have to pay a fine of $6.39 million for dispensing unauthorized legal advice and selling unnecessary annuities and other estate-planning products, will be welcomed by Ohio seniors, a group some disreputable businesses may see as the next group to hoodwink to boost their top line sales figures. 

In Ohio, AG Cordray's tools to deal with such violations are a more robust Consumer Sales Practices Act, which was specifically beefed up to handle Ohio's problems with payday lenders but which can also tackle reverse mortgage brokers. Also housed in his agency is the Elder Abuse Commission, made up of state government officials and various stakeholder groups from AARP to the Ohio Victim Witness Association.

Abridged

SOURCE:    The Examiner

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