Maryland Annuity News

Former Massachusetts Insurance Broker Sentenced For Fraud And Money Laundering

Joseph P. Garvey was sentenced to 71 months in prison, followed by three years of supervised release for money laundering and mail fraud. Garvey was also ordered to pay $493,748 in restitution. Garvey, a former independent producer for Transamerica and an insurance agent for the Knights of Columbus (KoC), used two intermediaries to defraud several people who thought they were buying annuity polices from Transamerica.  Instead of obtaining valid annuity policies, Garvey took checks that they had made out to Transamerica and deposited them into a bank account that he controlled. Garvey then used the victims’ monies for his and his wife’s personal benefit.  In a second scheme, Garvey pretended to be a former 80-year old client whom he had met through the KoC, in order to fraudulently withdraw funds from an annuity policy he had with the Catholic Order of Foresters.

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	Did You Know?
	Annuity tax-free exchanges, known as 1035 exchanges Section 1035 of the U.S. tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying any tax on the income and investment gains in your current variable annuity account. These tax-free exchanges, known as 1035 exchanges, can be useful if another annuity has features that you prefer, such as a larger death benefit, different annuity payout options, or a wider selection of investment choices.