Investors who have suffered losses in variable annuities contracts they purchased Michael Horowitz or Moshe Marc Cohen, may be able to recover their investment losses through FINRA arbitration or securities litigation.
According to a recent SEC litigation matter, Michael A. Horowitz, a broker who lives in Los Angeles, allegedly developed an illegal strategy to exploit the death benefit and bonus credit features of variable annuities contracts. Mr. Horowitz was able to allegedly fraudulently obtain personal health and identifying information of terminally ill patients in southern California and Chicago. Anticipating that these patients would soon die, Horowitz allegedly sold variable annuities contracts with death benefit and bonus credit features to wealthy investors, and designated the patients as annuitants whose death would trigger a death benefit payout to the investors.
Michael Horowitz, with the help of another broker, Moshe Marc Cohen of Brooklyn, NY, allegedly marketed the sale of these “stranger- owned” variable annuities contracts to investors as opportunities to acquire short-term investment gains. The SEC alleges that Mr. Horowitz told the contract owners – the wealthy investors funding the variable annuities contracts – to invest aggressively to help drive up the value of the account. He allegedly told investors that, if the value of the annuity contract climbed, the investor would receive it as the death benefit payout following the demise of the terminally ill annuitant. If the value fell, then investors would receive a death benefit that guaranteed a payout equal to the premiums paid minus any withdrawals. At least 16 terminally ill individuals were allegedly designated as annuitants in 2007 and 2008 in approximately 50 variable annuities contracts sold by Michael Horowitz.
If you are an investor that has purchased variable annuities contracts, you may be able to recover your losses through FINRA arbitration or securities litigation. Please contact Kons Law Firm at (312) 757-2272 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.
Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentlossattorney.com.