76-year-old Texas insurance agent gets 15 years for fraud

76-year-old Texas insurance agent gets 15 years for fraud
Stole $7M from elderly clients; will get out of prison when he's 91
MAY 31, 2011
A 76-year-old Texas insurance agent facing nearly a century behind bars for selling faux annuities to elderly investors will spend up to 15 years in the slammer. John F. Langford of Amarillo, Texas, was sentenced Sept. 12 in the 181st state District Court after pleading guilty to 15 counts of securities fraud and other charges. Authorities said he stole close to $7 million from dozens of clients through the sale of phony “private annuities” and promissory notes that promised interest rates as high as 9%, according to the Texas State Securities Board. Mr. Langford was sentenced to seven 15-year terms for the fraudulent sale of securities and eight 10-year terms for selling unregistered securities and selling without being registered. He will serve the time concurrently. The case goes back to about three years ago, when Texas securities regulators began investigating Mr. Langford and a business partner. The pair came under suspicion after the guardian of an elderly woman sued them, claiming that the victim had been persuaded to invest $941,756 in nine “private annuities.” A court later ruled that the woman was incompetent due to dementia. Angry investors who bought private annuities and promissory notes have filed claims in bankruptcy court against Mr. Langford, who filed for Chapter 7 bankruptcy protection in 2009. The ill-gotten gains allegedly were used for personal purchases and to pay off other investors who bought the phony products, clients alleged. In one of the cases, filed by Hazel Carter, a guardian for investor Ruth Alice Roach-Worak, the client was over 80 when she put close to $950,000 into a handful of fraudulent annuities between 2004 and 2006. Many of the fake annuities weren't going to come due for 10 years, at which point Ms. Roach-Worak would have been in her 90s, according to the complaint. A judge later ruled that she was incompetent to have made the decision. A call to Tim Pirtle, Mr. Langford's attorney, was not immediately returned.

Latest News

Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney
Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney

Nine-month electronic trading freeze and share lending program at the center of dismissed claim.

RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone
RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone

Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.

Rethinking diversification amid a concentrated S&P 500
Rethinking diversification amid a concentrated S&P 500

With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.

Merrill pays second settlement to former Miami Dolphins player, client of ex-broker
Merrill pays second settlement to former Miami Dolphins player, client of ex-broker

Professional athletes are often targets of scam artists and are particularly vulnerable to fraud.

Schwab touts AI as its biggest growth lever at investor day
Schwab touts AI as its biggest growth lever at investor day

The brokerage giant tells Wall Street it will use artificial intelligence to reach clients it has never been able to serve — and turn the technology's perceived threat into a competitive edge.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline