Florida Retiree Files 7-Figure Colorado Bankers Life Insurance Loss Lawsuit Against Citizens Securities. Our Annuity Loss Recovery Attorney Are Representing This Claimant
A senior investor who worked with former Citizens Securities broker David Paul Kopsak is suing the broker-dealer for up to $1,000,000 over losses that she sustained in Colorado Bankers Life Insurance Company. The brokerage firm is the one who approached her through Citizens Bank where she and her husband primarily had their money in CDs.
Promising to give her trustworthy financial advice, they then allegedly unsuitably recommended the couple place a substantial portion of their funds in a “very safe” CB Life annuity.
Little did they know that the amount they invested far surpassed state reinsurance maximums or that Colorado Bankers Life Insurance owner Greg Lindberg was purportedly operating a mass scam in which he allegedly funneled $1.2B of policyholders’ money into his non-insurance companies.
When the North Carolina Department of Insurance set up new asset requirements and Lindberg either was unable or unwilling to unwind hundreds of millions of dollars worth of Colorado Bankers-related transactions to comply, the insurance company was forced into administrative supervision in 2018.
It went into formal rehabilitation in 2019, which caused the suspension of obligations to policyholders who then saw their assets frozen. The company was ordered into liquidation in 2022.
Still, Kopsak allegedly kept recommending to clients, including this Florida retiree, that they invest in CB Life annuities. At no time was this investor warned that her life savings were in peril.
In her FINRA lawsuit, this CB Life annuity investor is alleging unsuitability, misrepresentations and omissions, breach of contract, negligence, and more. Shepherd Smith Edwards and Kantas (investorlawyers.com) are representing this claimant and many others who have suffered serious losses in Colorado Bankers and other Lindberg-owned insurance companies in their investment loss recovery claims against Citizens Securities and other brokerage firms.
With our in-depth knowledge of why these investments failed and the many ways in which broker misconduct or negligence played a part, we can help you determine whether you too have grounds for an annuity fraud lawsuit.
What You As A Colorado Bankers Insurance Investor Should Know
While the order of liquidation has been declared, it has not yet been put into effect. Lindberg appealed the order in January 2023. This has kept investors from being able to avail of anything they might get back from state life insurance guaranty associations, and, as we noted earlier, their funds remain frozen.
It is also important to acknowledge that for many CB Life annuity investors like this claimant, any payments from the associations won’t be enough to cover their entire investments.
Consider that Lindberg is accused of running a more than $2B scam that allegedly defrauded annuity investors. Also, in 2022 the North Carolina regulator found that Colorado Bankers had about $1.37B of assets, liabilities greater than $2.5B, and owed policyholders more than $1B. As Shepherd Smith Edwards and Kantas Senior Partner and CB Life annuity attorney Kirk Smith told the Wall Street Journal, investors’ best chance for full recovery is to explore their other legal options.
You may be able to hold the brokerage firms that marketed and sold you CB Life annuities liable for your losses. This is not something that you should do without seasoned broker fraud attorneys by your side.
How To Contact Us:
We have more than 100 years of combined experience in securities law and the securities industry. Our securities firm has fought for clients in arbitration, mediation, and court. More than 90% of those we have represented have received full or partial financial recovery.
To schedule your initial, no-obligation case assessment, call (800) 259-9010 or contact us online.