Tonight on Larry King: Avoiding Insurance Scams
Posted by wizeGurl
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|If you're Larry King, doing an hour-long TV interview with a celebrity or a central figure in a news story (a fireman fighting the California wildfires! a 9/11 widow! a murderer's brother!) every week night, you ought to eventually, in your 70-something years of life, learn a few basics about human nature.
- Celebrities who collapse from "exhaustion" are exhausted from too much booze and drugs.
- People who are accused of a crime will always claim innocence.
- There is no free lunch.
- If it sounds too good to be true, it probably is.
Unfortunately, it seems that ol' Larry didn't learn those last two life-lessons very well. At least, not judging by his lawsuit against an insurance company for "breach of fiduciary responsibility."
Here's the basic scoop. The Maryland-based Meltzer Group advised Larry to make some odd-sounding insurance deals. First, they advise him to buy a $10 million life insurance policy. (Hint: who sells life insurance to 73-year-olds?) Then, they advise him to sell it right away. He does, and makes $550,000 off the deal. Sounds good, right? Money for nothing. How could this be bad?
Then they advise him to sell an older $5 million life insurance policy he already had. He does, and nets $850,000 from this little transaction. Sweet! What's the downside to all this free cash?
Somewhere along the line, Larry figures out that the people who bought this insurance policies will get millions when he kicks it. Well, they did buy his policies; that's how that works. But apparently, Meltzer Group neglected to mention that buying up huge life insurance policies and selling them for profit might make it difficult for Larry to get any legitimate policies that he could actually use to help support his five ex-wives and one current wife, or his children (some of whom are, amazingly, still minors).
What? You mean there might actually be consequences to a quick-money scheme? And the schemers didn't tell Larry about them? How rude and moneygrubbing of them!
You'd think Larry would have learned a little bit more about how scams work back in the 70's, when he was charged with grand larceny and pleaded no contest to a charge of passing bad checks.
But hey, everybody knows old people are good targets for scams. Even ones who've been around the block a few times, and ought to know better.
Posted by Bob Jones on 2007-11-06 19:53:48
|Let's take this one step further. You do not really believe that Larry King did not have atleast one, if not two layers of lawyer's between him and the insurance agent. Come On.
I have one better. If you read this complaint more carefully, Larry's team,(Lawyers, Accountants, etc.) gets an offer for an old policy with an expensive premium, price for old policy $850K.
Agent suggests Larry and Co. to take the $850K and fund the new 5 Million, and like a refinanced mortgage, gets Larry a great policy that's less expensive.
But Mr. Greedy (Larry King) decides he wants to pocket the $850K and pay a bit more for the new insurance.
The agent is so good he is able to get Larry an additional 10 million. Cheapo Larry passes on the policy he does not want any new insurance.
Forget that its a gift, that as everyone has said in every blog you read, that King should not have been offered any new insurance. This Meltzer must be the best in the business.
So Larry says he wants to sell the new 10 Million, this guy just loves the cash. Guess what he can and hes sells it for $550K Not bad for a guy who is uninsurable.
The Greed here is on Larry King.
Larry goes along happy as a clam for 3 years and he his laughing it up at a chatity event when he sees his old agent buddy and tells him that he is so damn happy he made $1.4 million for doing nothing.
The agent flips his lid because he never earned a commission, and was not good enough to get Larry insurance in the first place. The agent figures he should get Larry and his lawyers crazy.
Good old greedy Larry sees another payday lets sue this prominent agent and shake him down for some cash.
The King shake down.
Posted by PS on 2007-11-07 09:10:44
|It is crazy to think that Larry King made all these decisions one on one with the agent. Larry had his CPA and atty's present at the meetings, and all agreed! Why isn't Larry suing his trusted advisors, his atty and CPA?
|Posted by Jack on 2007-11-07 15:09:45
|Do you really believe that Larry is sitting there naked (with no insurance) right now? He has a stable of ex-wives and there must be a requirement for him to have life insurance for them. It isn't uncommon in these transactions for people to sell insurance policies and use the money to offset the premiums for their other policies. Your right, this does sound like Larrys being greedy and it also sounds like sour grapes on the part of the other agent who missed out on a 6 figure commission.
|Posted by ned on 2007-11-17 14:57:13
|oh please,,, the guy obviously is over due for a really good spanking session.
I say just get some guy, preferably a big guy, perhaps a convict, one of those big ones who work out every day, and get him a dayleave to the cnn broadcast center.
Then you get him to spank larry hard, on tv, barebutted, and with a 2 by 4.
Now i want to see some tears, and dont stop till he's red in the face. only way they learn!
and do it on live television.
thats my opinion
|Posted by Anonymous on 2008-04-22 10:49:26
|Meltzer is a sleeze ball. In 1990's he was caught for selling cocaine, but because he was so tight with Mass Mutual they over looked it.Mass Mutual is just as sleezy.