In February 2012, Lake County, Calif. life agent Glenn Neasham was sentenced to 90 days in prison for selling an indexed annuity to a woman in her 80s, whom the prosecutor claimed was unable to understand the product because she had early-stage dementia at the time of the sale in 2008. Neasham's license was revoked and, unable to support his wife and their four children, he lost the family home.
The Neasham case sent chills up the spines of life agents nationwide who also sell variable products. Of all the financial decisions that came to light in 2008 and afterward, why was one annuity sale with questionable suitability the top target for criminal prosecution?
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