Financial Advisor Convicted of Felony Theft

In February of 2008, Fran Shuber, 83, and her boyfriend, Louis Jockim, visited insurance agent Glenn Neasham at his Insurance Agency in Lakeport. The three individuals had a preliminary discussion about Shuber’s CD that would mature that month and the possibility of switching to an Allianz indexed annuity. Shuber noted her health as “good,” and Neasham filled out the health questionnaire accordingly.

The couple returned a day earlier than their next appointment with Neasham. After a thorough presentation, the couple decided to leave $100,000 in CDs and bank accounts and to purchase a $175,000 MasterDex 10 index annuity from Allianze. Neasham claims no one mentioned Alzheimer’s or dementia at the meeting. Nearsham then contacted Shuber’s choice for the beneficiary, her son Jochim. Jochim told Nearsham that he was worried about his mother’s overall health, but he did not mention dementia or Alzheimer’s.    

The manager of the bank which held the CD was concerned that Shuber was under Jochim’s influence and feared the elderly woman did not understand the annuity. When Shuber paid Neasham she said she did understand the policy, right before handing him a check.  The bank manager reported Jochim to Adult Protective Services. An April 2008 interview revealed that Shuber’s choices were conducted under her own free will, but stated that she showed some signs of dementia. The case was then referred to the California Department of Insurance in May 2008.

On December 14, 2010, Neasham was arrested for the felony theft from an elder or dependent adult exceeding $950 and two special allegations (one stipulating that the theft exceeded $100,000). At trial, the prosecution argued that Neasham’s motivation during his time with Shuber was the $14,000 commission.  The defense claimed that no theft had occurred and that the alleged victim had, in fact, profited from the annuity. Neasham was found guilty of the felony theft. Neashan made a request for a new trial which was denied. He was sentenced to 300 days, reduced to 90 days, and reduced again to 60 days for good behavior. Neasham’s attorney has filed an appeal in higher court.

See Steven A. Morelli, Advisor Convicted of Theft for Selling an Annuity, Insurance News Net, Feb. 29, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.