Insurance agents Robert Andrew Lotter and Charles Albert Major have been charged with multiple counts of securities fraud offenses with aggravated white collar abuse and financial abuse of seniors after allegedly defrauding employees of the California school system with high-risk investments.
According to an announcement by the California Department of Insurance, Lotter owned and operated an insurance agency, RA Lotter Insurance Marketing, Inc., and Major is a licensed insurance agent. They contacted clients of the insurance agency and used various schemes to fraudulently obtain the victims’ private financial information to identify potential investors for Lotter’s high-risk investments, including by tricking some victims into believing that the Lotter’s insurance agency was affiliated with the California State Teacher’s Retirement System (CalSTRS).
Lotter also owns The TDS Group, a 403 (b) plan administrator for school districts across California. Some TDS Group clients have been victimized after being contacted by representatives of the TDS Group, who are also insurance agents for RA Lotter Insurance operating under the name TDS Benefits & Insurance Services.
The 23 victims identified by the California Department of Insurance were solicited and sold share certificates in the companies of Lotter, eAgency, Inc. and Mymobilewatchdog, Inc. School system employees who did not have enough cash to invest were encouraged by Lotter and Major to roll over money. from their retirement accounts to Self-Directed Individual Retirement Accounts (IRA), which were used to invest in Lotter’s companies. And, at least one educator has been convinced to withdraw money from his pension to invest in Lotter’s businesses.
eAgency, Inc. and Mymobilewatchdog, Inc., had a bad financial situation, including unpaid financial obligations to former investors, according to the announcement. Lotter and Major failed to inform their clients of the companies’ poor financial situation and failed to inform victims when the alleged lucrative partnerships failed. According to the California Department of Insurance, the 23 victims lost more than $ 3,036,300.
The agency says the charges are in addition to charges laid in November and May. On November 24, 2020, Lotter and Major were arrested on similar charges of securities fraud and burglary after allegedly defrauding more than 20 victims out of more than $ 4 million. On May 17, the California Department of Insurance announced that additional charges had been filed.
Following the news of the arrests and charges, other consumers contacted the agency and identified themselves as victims who also bought shares in Lotter’s companies.