Two seniors get money back from improper investments

Two Missouri seniors whose insurance agent improperly invested their savings are getting their money back.

Secretary of State Jason Kander announced Monday he has returned more than $57,000 to the couple.

The settlement stems from a previous action against Manzur Mazumder, a former agent for Bankers Life and Casualty Company (Bankers Life), based in Cape Girardeau, according to a news release from Kander's office.

The order alleges Mazumder and another agent, Harry Ward, convinced the couple to establish a brokerage account at ProEquities Inc. and let Ward manage and trade securities on their behalf to generate enough income to finance premium payments on life insurance policies. The release said Mazumder and Ward moved forward with the plan despite the couple's concerns about their ability to afford the premium payments.

"Investors need to not only understand the investment product and risks involved before turning over their hard-earned savings, but also the individuals offering those products," Kander stated in the release. "That's why it's important to call my office before investing to avoid becoming a victim of fraud."

Kander's order also alleges Mazumder and Ward made trades in the clients' brokerage account using a strategy that was inappropriately risky and ill-advised and eventually resulted in losses for the couple.

After leaving Bankers Life, Mazumder convinced the couple to sell an annuity purchased at Bankers Life, the release said, resulting in a surrender fee.

Bankers Life agreed to pay $57,178 in restitution to the Missouri residents, $40,000 in fines and $5,000 to cover the cost of the investigation, according to the release.

This is not the first time Mazumder has been in the news.

In November 2013, Kander issued a cease-and-desist order for Mazumder after he allegedly lost more than $241,000 belonging to a Jackson woman in a fraudulent investment scheme. He allegedly persuaded the woman, his colleague at a Cape Girardau insurance agency, to let him set up trading accounts in her name and make investments using money she pulled from her retirement accounts, credit cards, a home-equity line of credit and a bank account, according to the order.

No criminal charges were filed in that case.

kwebster@semissourian.com

388-3646