New York Annuity News

Department Arrests Former Northridge Insurance Agent in Fraudulent Investment Scheme

Insurance Commissioner John Garamendi today announced that California Department of Insurance (CDI) investigators have arrested a former Northridge insurance agent who allegedly took more than three quarters of a million dollars from senior citizens and their families for investments and annuities, then never made the promised investments.

“Let this be a warning to anyone who is even thinking of perpetrating fraud against California’s seniors,” said Commissioner Garamendi. “You will be caught.”

Ruben Echiverri Cu, 56, was arrested by CDI Fraud investigators at his Northridge home on October 31, 2006. He was booked into the Twin Towers jail facility in Los Angeles, and charged with five felony counts of Grand Theft and 15 felony counts of securities fraud, including Sales of Unqualified Securities, Sales of Securities without a Certificate, and Making False Statements in the Sale of a Security. Bail is set at $1,172,418. read more at insurance.ca.gov.

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	Did You Know?
	A variable annuity has two phases: an accumulation phase and a payout phase. During the accumulation phase, you make purchase payments, which you can allocate to a number of investment options. For example, you could designate 40% of your purchase payments to a bond fund, 40% to a U.S. stock fund, and 20% to an international stock fund. The money you have allocated to each mutual fund investment option will increase or decrease over time, depending on the fund's performance.