Ohio Insurance Department eyeing Barry Kaye Associates

The Ohio Department of Insurance is examining storied insurance firm Barry Kaye Associates Inc. after a civil suit on a failed life settlements transaction accused the firm of fraud and negligence.
AUG 05, 2009
The Ohio Department of Insurance is examining storied insurance firm Barry Kaye Associates Inc. after a civil suit on a failed life settlements transaction accused the firm of fraud and negligence. “We’re currently working on that case; it’s with our enforcement attorneys,” said Insurance Department staff attorney Barbara Farrington. The Insurance Department could not provide details on the examination, as it is in progress. The suit under scrutiny is titled Levin v. Barry Kaye Associates Inc., et al. It names the Boca Raton, Fla. firm, which was founded by insurance guru Barry Kaye and his son Howard. In the complaint, Louis Levin, an 81-year-old client, alleges that in 2006, the younger Mr. Kaye and the firm encouraged him to buy a $5 million life insurance policy on himself and earn a “substantial profit” by selling it to a third party after two years. In 2008, after paying more than $322,000 in premiums, Mr. Levin wished to sell his policy, but the younger Mr. Kaye said he was unable to locate a buyer, according to the lawsuit. In the complaint, Mr. Levin alleges that the firm never told him about the risks of the life settlement market, including the possibility that there might be no market in which to sell the policy. He is suing for breach of contract, unjust enrichment, negligence, fraud and violation of Ohio's securities laws. A call to Barry Kaye Associates was not immediately returned.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.