Alabama Annuity News

Agent Arrested in Annuity Fraud Scheme

David Franklyn McMillin, an Austin life insurance agent, has been arrested on charges of defrauding an elderly woman in Dime Box out of more than $117,000. A Lee County Grand Jury in Giddings indicted McMillin, 60, in August on charges of second degree felony theft.

Investigators from the Insurance Fraud Unit of the Texas Department of Insurance alleged that McMillin carried out a scheme to systematically steal $117,038 from two annuities owned by the woman. Annuities are insurance products that people commonly purchase to provide retirement income. The alleged theft occurred over a period running from February 1994 through May 1997. McMillin allegedly converted funds taken from the annuities to his own personal use, and none of the money benefited the victim. The victim died in 1999.

McMillin allegedly carried out his scheme by using documents that made it appear he was helping the woman with estate planning through establishment of a living trust. Family members who were helping the victim with her finances subsequently discovered the possible theft. If convicted, McMillin could face a prison term of from two to 20 and a fine of up to $10,000

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	Did You Know?
	The NASD Reminds Members of Their Responsibilities Regarding the Sales of Variable Annuities NASD is an independent self-regulatory organization charged with regulating the securities industry, including sellers of variable annuities. The NASD recently issued a release to its members reminding them of their responsibilities to investors in selling variable annuities (NASD Notice 99-35, "The NASD Reminds Members of Their Responsibilities Regarding the Sales of Variable Annuities").