Seniors Bilked by Annuities Salesmen, Suit Charges

October 17, 2001
A 73-year-old Florida man has sued two companies that allegedly tricked him and other seniors into buying annuities that were not likely to mature until after their deaths.

Charles Strube charges that an American Equity Life Insurance agent talked him into cashing in existing annuities worth more than $800,000. The suit, which seeks $75 million in damages, seeks class-action status.

Strube, who says he was subjected to excessive penalties and forfeitures for cashing in his old policies, alleges that the American Equity annuities were purposely designed to be deceptively similar to popular "variable annuities" but were crafted in such a way that they avoided having to comply with federal securities laws.

Besides American Equity, headquartered in West Des Moines, Iowa, the suit names Creative Marketing International, of Shawnee, Kansas.

The suit was filed in Orange County, Florida Circuit Court by attorney John Hargrove. Questions should be directed to Hargrove.

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