Joseph Anthony Mele, 33, of Ventura, California, has been denied parole after the parole board found that he still posed an unreasonable risk of violence to the community.
In January 2016, Mele was sentenced to 10 years in state prison after pleading no contest to multiple felony counts, including financial elder abuse, grand theft, and embezzlement.
"Mele's parole denial keeps him where he belongs and is further vindication for his victims," said California Insurance Commissioner Dave Jones. "The hard work of investigators and the Santa Barbara County District Attorney uncovered his crimes, built a strong case, and sends a message to anyone who targets seniors with financial scams."
According to the California Department of Insurance ("DOI"), Mele, a former insurance agent, gained the trust of two elderly victims, ages 93 and 74, and acted as their financial planner. He purchased, sold, and repurchased long-term annuities without their knowledge, which ultimately resulted in the victims losing over $2 million combined.
The DOI said that Mele twisted and churned the victims' policies, a deceptive practice of rewriting annuities to obtain additional commissions under the guise of providing better returns. Mele earned hundreds of thousands of dollars in commissions through these deceptive practices and caused the victims to incur over $650,000 in surrender fees, penalties, and lost premiums, the DOI said.
The DOI said that the victims received all of the surrender fees, penalties, and interest back from the insurance companies. One victim feared she might lose her home, but the recovered money allowed her to stay. The DOI recovered over $650,000 in restitution for these victims, it said.
In addition to these deceptive sales practices, Mele advised the 93-year-old victim to sign blank checks totaling over $800,000 so he could invest the funds for her. The money was not invested, but instead was deposited into Mele's personal bank account and used for entertainment, elaborate vacations, gambling, and plastic surgery, according to the DOI.
Learn more: Parole Decision.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].