Stockbroker Brings Client Back to Life

Jason Pedigo, a licensed stockbroker, obtained a customer named WL. In mid-August, WL decided to buy a fixed annuity, and the customer instructed Pedigo to purchase a fixed annuity on August 31, 2009. That same day, Pedigo submitted a fixed annuity contract with Pacific Life Insurance Company, and Pacific Life issued the contract and sent it to Pedigo in accordance with its selling agreement.

The problem was that WL died on August 20, 2009. Since WL was dead, Pacific Life never received an executed “Annuity Contract Confiramtion” from WL. Pacific Life mailed eleven letters to Pedigo asking for the return of WL’s signed ACC. Finally, in March 2010, Pedigo informed Pacific Life that WL was deceased and requested paperwork to submit a death claim. Pacific Life maintains it never received the death claim paperwork.

In August of 2010, Pedigo sent a surrender request form to Pacific Life, and the company informed Pedigo that it could not process a full surrender because WL was dead. So, Pedigo faxed Pacific Life an ACC purportedly signed by WL on September 8, 2009 (twenty days after WL died). Pedigo was subsequently barred from the industry for violating FINRA’s Rule 2010.

See Bill Singer, Zombie Client Signed Annuity Document 20 Days After His Death, Forbes, Sep. 23, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.