Since financial adviser Dean Vagnozzi was charged with fraud in a government lawsuit in July, he has been castigated by regulators for how he steered customers to Par Funding, a Philadelphia lender founded by a twice-convicted felon. With his heavy radio advertising and free steak sales dinners, Vagnozzi, 51, touted alternatives to Wall Street.
Actually the title to the original article is misleading.
Don’t bet on people dying to make your profits. Unfortunately some people do just that.
Life Partners founder Brian Pardo lived well in Waco, Texas, for a time. Pardo bought four planes and a yacht along with such artifacts as replicas of an ancient Egyptian sarcophagus and a pharaoh’s throne. His business eventually sold $2.4 billion in policies to 20,000 investors.
But in 2010 the Wall Street Journal reported that Pardo’s firm was relying heavily on an assembly-line doctor who was systematically under-predicting life expectancies. Life Partners’ sellers were living a lot longer than predicted — very good for them but hard on investors paying years of premiums without collecting death benefits,https://insurancenewsnet.com/oarticle/how-clients-of-an-advisor-facing-fraud-complaint-lost-bets-on-the-dead?utm_source=feedly&utm_medium=rss&utm_campaign=how-clients-of-an-advisor-facing-fraud-complaint-lost-bets-on-the-dead#
I’ve never been a fan of the life settlement business.
Never accept one of those free steak dinner offers.
2 thoughts on “How Dean Vagnozzi’s Clients Lost Bets On The Dead”
I was approached twice over the years to purchase something like this. I believe they were called Viaticals. It sounded too risky to me. Glad I passed.
Viatical is the same thing as life settlement. You sell the proceeds of your life insurance policy to an investor for a lump sum payment. You die “on time” or earlier, the investor wins. You live longer than your life expectancy you win. Do not accept any free steak dinners!