Insurance coverage brokers Robert Andrew Lotter and Charles Albert Main have been charged with a number of counts of securities fraud violations with aggravated white collar and monetary elder abuse enhancements after allegedly defrauding California faculty system staff with high-risk investments.
In accordance with an announcement by the California Division of Insurance coverage, Lotter owned and operated an insurance coverage company, R.A. Lotter Insurance coverage Advertising and marketing, Inc., and Main is a licensed insurance coverage agent. They contacted purchasers of the insurance coverage company and used numerous schemes to fraudulently get hold of victims’ personal monetary data with a view to establish potential buyers for Lotter’s high-risk investments together with main some victims to imagine Lotter’s insurance coverage company was affiliated with the California State Trainer’s Retirement System (CalSTRS).
Lotter additionally owns The TDS Group, a 403(b) plan administrator for college districts all through California. Some TDS Group purchasers have been victimized after they have been contacted by TDS Group representatives, who’re additionally insurance coverage brokers for R.A. Lotter Insurance coverage working below doing enterprise as TDS Advantages & Insurance coverage Companies.
The 23 victims recognized by the California Division of Insurance coverage have been solicited and offered inventory certificates in Lotter’s firms, eAgency, Inc. and Mymobilewatchdog, Inc. Faculty system staff who didn’t have sufficient liquid property to take a position have been inspired by Lotter and Main to rollover cash from their retirement accounts into self-directed particular person retirement accounts (IRAs), which have been used to put money into Lotter’s firms. And, at the least one educator was satisfied to withdraw cash from their pension to put money into Lotter’s firms.
Each eAgency, Inc. and Mymobilewatchdog, Inc., had poor monetary statuses together with unpaid monetary obligations to prior buyers, based on the announcement. Lotter and Main didn’t make their purchasers conscious of the poor monetary statuses of the businesses and they didn’t notify victims when the alleged profitable partnerships fell by. The California Division of Insurance coverage says the 23 victims misplaced greater than $3,036,300.
The company says the costs are along with costs made in November and in Might. On November 24, 2020, Lotter and Main have been arrested on related costs of securities fraud and housebreaking after allegedly defrauding greater than 20 victims out of over $4 million. On Might 17, the California Division of Insurance coverage introduced further costs have been filed.
Following bulletins of the arrests and costs, further customers contacted the company and recognized themselves as victims who additionally bought inventory in Lotter’s firms.