The Pennsylvania Attorney General has sued 16 individuals, accusing them of using direct mail, telemarketing and other means to purchase costly and unnecessary revocable living trusts, long term annuities or charitable gift annuities.
The alleged victims documented approximate losses that range between $1,800 and $80,000.
Attorney General Jerry Pappert also filed a preliminary injunction seeking to ban the defendants from engaging in the unlawful advertising, promotion or sale of estate planning products or services in the state.
The defendants include:
*Estate Planning Advisors Corp. (EPAC), 525 West Chester Pike, Havertown.
*Ben Consulting Corp. (BCC), 525 West Chester Pike, Havertown.
*Funding & Financial Services Inc. (FFS), 525 West Chester Pike, Havertown.
*Brian J. Newmark of 913 N. Spring Mill Rd., Villanova, the president of EPAC, BCC and FFS.
*Barry O. Bohmueller, 900 East 8th Ave., Suite 300, King of Prussia.
*Brett B. Weinstein, 900 East 8th Ave., Suite 300, King of Prussia.
*John Wight, 491 South 9th Street, Quakertown, an employee of Newmark, Bohmueller and Weinstein.
*Victoria Larson, 332 Washington Place, Wayne.
*Glenn Larson, 378 Lehigh Ave., Palmerton.
*Brett Marcus of 1239 Oakland Terrace Rd., Arbutus, MD.
Between 2001 and 2004 Bohmueller and Weinstein used telemarketing, newspaper ads, mass mailings, senior expos and local seminars to promoted their estate planning services. Those responding to the ads or promotions were typically senior citizens often 70 to 80-years-old, according to Pappert.
The complaint alleges that consumers who attended the presentations or allowed the defendants into their homes were advised to purchase a revocable living trust. The trust was presented as an estate-planning document that was in the consumers’ best interest, regardless of their individual financial holdings. Many were sold living trust kits for approximately $1,800 whether they needed them or not. Consumers said they were unaware that the sales representatives were insurance agents who received sales commissions.
The complaint asked the court to:
*Require the defendants to pay full restitution to consumers who can prove they were harmed.
*Require defendants to pay civil penalties of up to $5,000 per violation.
*Permanently ban defendants from engaging in the illegal telemarketing, advertising, promotion or sale of estate planning products or services.
*Require defendants to pay attorney fees, investigation costs and an accounting and audit of their commissions and income.
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