Companies allegedly scammed $6.4 million from seniors in annuity plan fraud

Columbus, OHApproximately 8,000 senior citizens in Ohio were reportedly bilked out of their money through illegal annuity plans.

The Ohio Supreme Court reportedly imposed an unprecedented $6.4 million fine against the American Family Prepaid Legal Corporation and Heritage Marketing and Insurance Services for their alleged involvement in the scam, the Columbus Dispatch reports. The two companies were also barred from doing future business in the state.

According to court papers, customers of the companies paid $1,995 in exchange for "very limited services such as the preparation of a living trust document and related real-estate planning instruments."

"For this reason, for the thousands of memberships sold, few if any members obtained legal assistance other than a living-trust portfolio," added the court.

The fine was based on the fact that the employees of the company allegedly sold at least 3,800 legal plans in violation of laws barring nonlawyers from practicing law.

If the $6.4 million fine is collected, the money will reportedly be entered into an account that will go towards the cost of investigating similar legal issues and continuing legal education.