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Former Lake Forest insurance agent allegedly steals nearly $50,000 from elderly clients

News: 2022 Press Release

For Release: May 2, 2022
Media Calls Only: 916-492-3566
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Former Lake Forest insurance agent allegedly steals nearly $50,000 from elderly clients

SAN BERNARDINO, Calif.  Former insurance agent Alan Douglas Armstrong, 56, of Lake Forest, was arraigned today on five felony counts of theft from an elder. This comes after Armstrong allegedly acted as a financial advisor and licensed insurance agent to steal over $47,950 from elderly clients.

"Theft of any kind will not be tolerated. It is heartbreaking to think that people prey on the elderly to allegedly steal from their hard-earned nest eggs,” said Insurance Commissioner Ricardo Lara. “I am proud of the work California Department of Insurance investigators do to protect consumers and our efforts to cooperate with local district attorneys to bring perpetrators to justice.”

The California Department of Insurance began an investigation after being contacted by a family member of one of Armstrong’s clients when they learned their elderly parents had withdrawn cash on 12 separate occasions from several annuities to personally loan Armstrong more than $47,950.

The investigation also found Armstrong convinced his clients to withdraw funds from one annuity and then months later purchase a new annuity, hiding that the source of funds was from a terminated annuity, resulting in his clients incurring more than $24,000 in surrender charges.

To hide his alleged scheme, Armstrong provided a life insurance policy number to his clients as “financial collateral” where he listed them as beneficiaries on a $500,000 policy, which did not actually exist. He also made numerous false claims regarding the return on their investment, including making more than their money back on huge losses incurred by multiple surrender charges on their existing annuities.

Armstrong was arrested by the Orange County Sheriff on April 28, 2022, and bail was set at $102,500. The Department of Insurance revoked his license on March 9, 2022.

The case is being prosecuted by the San Bernardino County District Attorney’s Office.

Media note:

Arrest photo is available upon request.

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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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