Bad Brokers and Evil Insurance Agents

Bad Brokers and Evil Insurance Agents. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst and trader Chris Markowski.

Speaker 2 (00:16):
Bad Brokers and evil insurance Agents. How many people remember
Groundhog Day? Yeah? Great movie? How about Needlenose Ned Ryerson?
You remember Needle knows Ned Ryerson? Phil? Phil Connors? Is
that you remember him? Do you have life insurance? Phil?

(00:37):
Because if you do, you could use more? Who couldn't?
But I got a feeling you don't have any? Am
I right? You know? Ned? I'd really love to, but
I've got to That's okay. I'll walk with you. When
I see an opportunity, I charge it at like a bull,
Ned double bull. That's me. Now. Yeah, I might insure

(00:58):
actuarial tables some of the other insurance age. I think
it's just a crapshoot. And again, you all know the
story Needle Knows Ned Ryerson, bad Broker's, evil insurance agents.
What I've been dealing with since I started this program
twenty five years ago. That's was the bulk of what

(01:21):
we discussed when I first started this obviously way before
podcast twenty five years ago, when I was just on
my terrestrial radio program, which I still have, by the way,
efficient and profitable words that describe the insurance an annuity business. Great, great,

(01:44):
great stuff for salespeople. Great for salespeople, making it very
very easy, ninety nine point nine percent of the time,
disastrous for the client, Disastrous for the client. I have
been trying to educate people's best we possibly can here

(02:04):
on the program, how to avoid being ripped off and scammed,
how to avoid all of the nonsense that takes place
in the insurance industry with all of these annuities. And
the reality is that some listen, most don't. Most don't.
Most buy into the nonsense. And let me tell you something,
I get it. There's a lot of fantastic evil salespeople

(02:28):
out there, without a doubt. You know. It's interesting is
that they're finding out that a lot of bad brokers
and advisors that are thrown out of the securities industry
move over as insurance salespeople. They move right on to
selling annuities and insurance. Now, if you've never noticed this,

(02:49):
I have you go to state capitals, any state capital,
there'll always be a big, big building in any state capital,
and that is the insurance building. And again I don't
know what type of regulations. I don't know what they
do at the building, but they're most certainly not protecting
investors within the state. And it's interesting a lot of
these insurance types and insurance regulators, they end up becoming

(03:13):
politicians down the road. The irony, I guess there's none.
I've told this story before, my experience, my experience and
the insurance business personally. It was back when I was
in college, my senior year, second semester. I was all
excited because I got myself an internship at the Equitable.

(03:38):
The Equitable and I proceeded to take a bus downtown
to go work at the Equitable, and the insurance agents
there had me doing a myriad of things, stuff and
envelopes whatnot, some of their marketing stuff. And I got
a job that I've taken my life. I go in
it one hundred and ten and twenty percent. That's just

(03:59):
all I know. So they they call me into the
conference room one day and they're, you know, Chris, you're
doing a great job. We love the work you're putting in.
Tell you what we're going to do. We want to
allow you to be able to take your licensing exams.
Insurance exam. I think the series was at the time
insurance one. We could sell variable insurance. It was Series

(04:21):
six or something like that. Anyway, anyway, right after that,
again I am just thrilled, thrilled, so I can't believe it.
They're gonna allow me to do this. They then proceed
and I didn't really recognize it at the time, showing
me they will explain some of the products that they
bring to their clients. And they show me this kind
of this insurance perspectus and application and all this stuff.

(04:44):
And they were telling me how wonderful it would be
for me, how wonderful man, and this is perfect for you,
and this is great. And I'm like, oh, yeah, right,
I listened to every Again. I'm a kid, get twenty
one years old, I know any better. So I grab
all this stuff finished at the day and I'm like,
I get I'm you know, on cloud nine. Quite frankly,

(05:05):
I remember how excited I was leaving that office. On
my way back to school, had to wait tables at night,
and I'm sitting down, sitting down there at the back
of the restaurant and you know, looking at the stuff,
eating a little you know, pre dinner or pre service meal.
And the owner walks by and he sees me looking

(05:27):
at the stuff, and again a great deal of respect
for the owner of the establishment, owned several others, great
business owner, small business owner. And he taught me a
ton and he saw what I was doing. He started
asking me some questions and I told him, I said,
all this internship and this is what I'm doing, and listen,
it's just great investment thing that they want to get
me involved with. And he laughed, he smiled, and he

(05:52):
kind of ripped me. He's like, Chris, I thought you
were smarter than that. What do you mean? He said,
what in the world do you need life insurance for
you twenty one years old? They don't have any dependents.
This is silly. And I said, well, but this is
supposed to be a great investment. He's like, no, you
don't need this. This is dumb, this is a scam.

(06:13):
Don't do it. And well he was right. Push came
to shove. You know, I didn't sign up for the
life insurance policy that they wanted me to buy into.
That I couldn't afford at the time because I was living,
you know, and the mouth at that point. Yeah, they
were not pleased with me, and for some reason they
never let me take those licensing exams. Anyway, anyway, it

(06:36):
is what is he Oh, you're bitter about that, And no,
I'm not bitter about that. It was a great learning experience.
But anyway, they're everywhere. People, they're everywhere, and we've been
battling against them for some time. More often that they
infiltrate various different affinity groups. So I talk about affinity groups,

(06:56):
whether it be a church group, whether it be an
ethnic group, whatever may be. Oh nice, young gentlemen. They're
selling garbage and it's getting worse. And what bothers me
to is the fact that it's obvious. I mean, if
I can discover this stuff. Even the Wall Street Journal
did some pieces on this. I gotta hand. Jason's wife

(07:16):
did a couple of great pieces on what some of
the things that are taking place. You mean to tell me,
the sec the insurance regulators can't shut this down. Back
in August, back in August, there's something started popping up.
It was called from this They called it Investment Advisory firm.
They're not an investment advisory firm to scam. They're called

(07:37):
Yield Wealth Yield Wealth, and they were promoting ten year
term deposits offering yields up to seveneen percent, seventeen percent.
You know, these high yield scams have been around before,

(07:58):
the Alan Stanford thing with that CDs that he was
selling back in the day. This, this yield company, their products.
We're setting a new standard in banking, and we're guaranteed
by up to ten million dollars in insurance coverage through
a network including Lloyd's of London. Now, as soon as

(08:20):
I saw that well being before, as soon as I
saw seventeen percent hedas like bullshit. Sorry, massive steaming pile
of bullshit. The marketing brochure Mega High Yield Term Deposit

(08:40):
said it offered colossal yields without risk, adding that any
interest you earn is locked in and can't be lost. Again,
I want to make it perfectly clear. It would be
more believable, more believable if I told you I could fly,

(09:04):
that I could literally defy gravity, superman esque than this.
You'll get locking fifteen percent and perpetuity. That's one of
their products. Okay, play with a compounding calculator fifteen percent.
Take one hundred thousand dollars. Take one hundred thousand dollars

(09:26):
at fifteen percent over a few decades and see what
it comes out to, you know, not even adding anything
to it. You're talking over six and a half million dollars. Okay,
these things they're just not possible. This Yield company, it's
not a bank, they're not even bank accounts. However, they're

(09:48):
claiming that they have FDIC insurance up to ten million dollars.
The FDIC is for banks and it only ensures up
to two hundred and fifty thousand. The firm's chief executives
said that the products were never launched and Yield Wealth
has now been dissolved without taking in the funds. Yet

(10:10):
that's not true. These products are being sold all over
the country by evil insurance agents, evil insurance agents that
again are deep in debt, and they're getting paid upwards
of a twenty percent commission on these things. They're stealing
from people I am. You know, listen, our door is

(10:37):
always open for questions. It's one of the first things
that we do every day is, you know, take a
look to see who we feel might be getting ripped
off and scam people have questions call email us in
regards to insurance products, annuity products, whatever it may be.
You don't you don't have to be a victim. Yet
you have to really think things through. All of this

(11:00):
stuff is absolutely and utterly impossible that it's all a lie.
I again, people, Everything in life that has meaning, value
and worth involves work, time and effort. It's just that simple.
There's no way around it. Again. I wish people understand.

(11:22):
You know what I realised to is I wish our
education is our educations is here in the United States
actually talk people about money, understanding, compounding, what's possible, what's
not possible. It's utterly ridiculous. Guaranteed that you see you
hear the word guaranteed. What are you talking about? Guaranteed
seventeen percent return? Guaranteed fifteen percent return? Do you ever

(11:45):
ask yourself? How well? As it turns out, the guy
behind this thing said, the way that he does it
is that he trades gold. Dysfunction in the gold markets,
arbitrage in the gold markets. What a load of b

(12:07):
s arbitrage in the gold market. There's not there's not
that much off a disconnect kids. It's a liquid market
for crying out loud. There's no way that that is
humanly possible. I mean, as soon as you start questioning things,
as soon as you as soon as you start that,

(12:29):
you know, red flags should go up in your mind.
I touched it before. I know. I got a very
very strong bull excrement meter. Okay, but you have to
have some. You have to have some. And again I
invite each and every one of you out there. You
have any questions in regards to anything you're doing. You
want to know whether or not you're getting a foogazy Okay,

(12:51):
don't be like re'mber lucky. Hey, you get lucky in
Donnie Brascal. Oh it's a beautiful time for beautiful time,
diamond ring and it's for gazy. It's fake, Okay, you
want to know if it's a fake or not. You
won't know if it's a foogaisy reach out. This is
what we're here for. Watchdog on Wall Street dot com