PITTSBURGH (AP) — A Pittsburgh-area insurance agent is set to plead guilty to mail fraud in a promissory note scam that federal prosecutors say cost investors $8.2 million since 2002.
John Hogan was a licensed insurance agent in Swissvale, but also claimed to be a financial planner though he wasn't licensed to sell investment products.
Prosecutors say he sold whole life insurance policies to investors, then persuaded them to draw out the cash value of those policies so he could loan their money out to other clients who, supposedly, needed "hard cash" loans quickly. Hogan promised his life insurance customers that they'd get at least a 10 percent return on their money but prosecutors say he, instead, used it to pay off business loans and real estate.
Hogan's attorney didn't immediately comment on the plea scheduled for Thursday morning.
The post Pittsburgh Agent Set To Plead In $82M Scam appeared first on InsuranceNewsNet.
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