Former insurance agent charged in $21 million annuity, movie-making scheme
September 23, 2015 by IFAwebnews Staff
A former insurance agent and an alleged accomplice have been charged with operating a Ponzi scam to defraud annuity owners out of $21 million.
The Los Angeles-area duo are accused of convincing clients to cash in their annuities and invest in a bogus, elaborate movie investment scheme.
Michelle Kenen Seward, 42, of Flintridge, Calif., and Dror Soref, 75, of Los Angeles, were arrested last week.
A California Department of Insurance Investigation uncovered evidence that Seward, a former licensed insurance agent and CEO of Protégé Financial and Insurance Services, Inc. and Saxe-Coburg Insurance Solutions, LLC, allegedly convinced her clients to invest their life savings in a film directed by Soref titled “Not Forgotten,” which was an unsecured investment.
The 2009 film starring Simon Baker and Paz Vega grossed $54,000 in theaters, according to IMdb. Soref began his career directing music videos for “Weird Al” Yankovic.
The movie aired in only a handful of theaters and authorities claim the studio money was only used to repay some movie investors.
In some cases, Seward allegedly talked clients into surrendering annuities early and paying large penalties by promising returns of between 10 and 18 percent. Investors that surrendered annuities paid more than $600,000 in penalties and fees for early withdrawal.
After the film’s completion, the two formed a new entity titled Windsor Pictures LLC, which investors were promised would produce several films. Investors were given promissory notes and told they would again earn between 10 and 18 percent on their investment.
Investigators found evidence that investors’ money used to form Windsor Pictures was used to pay investors in the production of Not Forgotten. Additionally, Seward and Soref were not licensed to sell securities or provide investment advice.
The case is being prosecuted by the Los Angeles County District Attorney’s office.