LOS ANGELES, November 4, 2020 – Reif Law Group, P.C., California’s preeminent boutique trial and litigation law firm for securities and business disputes, filed a $30,000,000 civil lawsuit against Massachusetts Mutual Life Insurance Company (Mass Mutual), Ira Hermann and others involving a premium financing insurance and investment scam.
“Life insurance financing schemes are like a money pit that leaves people like my clients in debt and stripped of the life insurance,” said Lead Attorney Brandon S. Reif.
Wilson Choe and related family trusts allege that Mass Mutual agents induced Choe to purchase tens of million dollars in life insurance policies as an investment plan using funding companies to advance the premiums even though Choe had no reasonable need for such exorbitant insurance and could not afford the premiums nor the excessive finance charges. It is also alleged that Mass Mutual induced Choe to cross-collateralize life insurance policies even though the scheme exposed the policies to enhanced risk including the forfeiture of the policies. Mass Mutual agents also exchanged an existing policy to generate commissions, which is known in the industry as “churning” or “twisting” insurance policies.
Reif continued, “Despite paying millions in premiums in cash and debt, the insurance policies are gone, and my clients are left in financial ruin.”
The complaint claims that the defendant professionals earned exorbitant commissions and the defendant financial institutions earned exorbitant premiums. Choe will seek economic damages in an amount not less than $30,000,000. (Wilson Choe, et al. v. Mass Mutual, et al., Orange County Sup. Ct., Case No. 30-2020-01168105-CU-FR-CJC (October 30, 2020)).
About Reif Law Group, P.C
Reif Law Group, P.C. is California’s preeminent boutique trial and litigation law firm for securities and business disputes. The firm prosecutes and defends court and arbitration actions involving securities, investments and real estate; professional liability; shareholder derivative; workplace harassment, discrimination, recruitment and Form U5; and business disruption and restraining order actions involving non-compete, non-solicit and confidentiality clauses. www.reiflawgroup.com
Posted in: News