BOSTON (AP) - Massachusetts authorities say an insurance salesman illegally made millions of dollars by persuading seniors to withdraw from their savings so they could buy insurance policies through his company.
Ryan Skinner has been charged with acting as an unregistered investment adviser, according to a Wednesday announcement from Secretary of State William Galvin.
Skinner, who is president of Summit Financial Partners in Woburn, Massachusetts, denies the allegations. An attorney representing him says Skinner stands by his work.
“Once the facts come to light, it will be clear that Ryan has worked in the best interests of his clients, and has helped his clients achieve proper insurance planning under stringent ethical standards,” attorney Andrea Nuciforo said in a statement.
Authorities say Skinner advertised himself as a “retirement specialist” and promised to provide personalized financial advice and planning services. Instead, he sold dozens of clients the same fixed annuity policy and took a 7% commission, according to a complaint filed by Galvin’s office.
Skinner and his company are accused of making more than $4 million through the scheme. The complaint says he offered seniors free lunches where he advised them to draw from their savings so he could help maximize their retirement plans. In some cases, Skinner advised clients to invest their entire life savings in his company, investigators found.
Investors complained that they had to pay costs that had not been disclosed by Skinner’s company, and that he stopped answering calls when they asked about it. He’s accused of selling the same annuity to 128 clients.
Galvin’s office is asking Skinner to give up all profits from the scheme and to provide restitution for investors’ losses.
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