California Elder Care - Insurance Agent Arrested

insurance.ca.gov, Dec 14, 2006

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.

In August 2004 the Department received a complaint from Shirley and Howard Horlick, age 77 and 80 respectively, alleging that life insurance agent Ruben Cu had offered to advise them on insurance annuity investments. Instead, they were convinced to refinance their mortgage-free home and invest a total of $317,000 into Cu’s corporations for a return of 14% to 20% on their investment. Cu paid back only a small portion of their principal investment. The Horlicks have been unable to collect the balance of the money promised to them by Cu. Read more at insurance.ca.gov