Former Brentwood Agency Operator Faces New Penalties for Fraud
Wilson’s Insurance License is Revoked and Must Pay $187,000 in Civil Penalties
NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) today announces $187,000 in civil penalties and the revocation of the insurance producer’s license formerly held by Brentwood, Tenn. insurance agency operator John Oscar Wilson III. These penalties are related to Wilson defrauding five insurance clients, including many instances of forging client signatures to insurance-related documents, and the misappropriation of their monies.
These are the latest disciplinary actions taken to protect consumers who were clients of Wilson, of Antioch, Tenn. In 2015, the Department summarily suspended Wilson’s insurance producer’s license because the continuation of his license was found to be hazardous to the public welfare. In 2016, Wilson pleaded guilty in federal court to two counts of wire fraud in connection with a fraudulent nsurance/investment scheme. Last year, Wilson was sentenced to 52 months in prison, followed by three years of supervised release for defrauding his clients and insurance agencies out of more than $800,000. Wilson was also ordered to pay $841,000 in restitution. Wilson is currently imprisoned in a federal penitentiary in Kentucky.
“At first blush, these additional civil penalties and the license revocation might seem unnecessary given Wilson’s guilty plea and his imprisonment, but, in fact, they are necessary steps to protect consumers and fully impose justice on behalf of Wilson’s victims, while sending a message that TDCI will not stand for such actions in our marketplace,” said TDCI Assistant Commissioner Michael Humphreys. “That said, and because the victims come first, these penalties will only be collected after Wilson makes good on his ordered restitution. We urge Tennessee insurance consumers to turn to us if they ever have questions or suspicions about their investments or insurance policies.”
Investigators found Wilson defrauded his clients, many of whom were elderly or vulnerable, in at least three different ways. In order to be paid commissions as the owner and operator of Preserve Financial Group (PFG), Wilson would advise clients to cash in their tax-deferrable investments and purchase multiple insurance products – though he would not disclose the tax or financial penalties for doing so. Second, Wilson convinced some clients to surrender insurance policies or annuities to him for investment in another insurance policy or annuity. Instead of investing the money, however, Wilson deceived his clients and would deposit the funds into the PFG bank account he controlled where he could use the funds for his own benefit. Finally, Wilson would convince some clients to surrender insurance policies or annuities by deceiving clients into believing they were investing in PFG by purchasing stock in the company. In truth, there was no such stock and, instead, the money was deposited into the PFG bank account, which was then used for Wilson’s own personal benefit. Wilson used a radio program entitled “The Retirement Solutions Show” to attract retirees to invest.
