Retired farmer sues First National Bank over looted annuity
November 8, 2017 by Jonathan Ellis
A retired farmer has filed a lawsuit against First National Bank in Sioux Falls, claiming the bank’s employees set up an account that enabled his son-in-law to loot hundreds of thousands of dollars from an annuity.
Harold Wittrock bought the annuity from Jackson National Life Insurance Co. in 2007. In 2009, according to the lawsuit, Roger Kappel, Wittrock’s son-in-law, established an account at the bank using Wittrock’s forged signature. Other forged documents changed the annuity’s servicing representative and another enabled Kappel to make changes to the annuity.
Wittrock, 94, lives in Rock Rapids, Iowa.
Beginning in June, 2009, Kappel began withdrawing funds from the annuity, starting with $40,000. The withdrawals continued until last December and were made by forging Wittrock’s signature, the lawsuit says. Checks in Wittrock’s name were mailed to Kappel’s address. Kappel forged Wittrock’s name and deposited them in one of his accounts at First National Bank.
The withdrawals totaled more than $639,000.
“During that entire time, neither of the defendants or their agents contacted the plaintiff to ascertain whether or not the plaintiff actually wanted to make the withdrawals that had been submitted over his forged signature,” the lawsuit says.
A lawyer for Wittrock declined to comment. Bill Baker, the chairman and CEO of First National Bank, said he was aware of the lawsuit but couldn’t comment because of ongoing litigation.
The lawsuit, filed in federal court, also names Cetera Investment Services, which provided investment services through First National, according to Wittrock’s complaint.
Kappel, who lives in Dell Rapids, could not be reached. The lawsuit says the evidence was turned over to state authorities and the FBI.
The lawsuit says that Kappel showed Wittrock doctored account statements for the annuity. But in February, Wittrock became suspicious and asked another representative to check the account. He learned in March the annuity was only worth about $5,000.
The lawsuit says First National replaced $310,000. But had the unauthorized withdrawals not been made, the annuity would now be worth more than $800,000.