Insurance Broker Defrauds Seniors Out of Annuity Funds

Williamsburgs William Lowder Pleads Guilty to Wire Fraud and Tax Charges GRAND RAPIDS, MIWilliam Edward Lowder, age 57, of Williamsburg, Michigan, pleaded guilty to one count of wire fraud and one count of filing a false federal income tax return. According to a felony information filed on January 9, 2013, Lowder was a licensed insurance agent and annuities producer who operated as Lowder Insurance and Ash Brokerage. Beginning in 2001, Lowder began defrauding several of his elderly clients by convincing them to liquidate existing annuity investments under the promise that the proceeds would be reinvested in annuities earning higher rates of return. After the clients liquidated their annuities, Lowder convinced them to provide the proceeds directly to him for reinvestment. Instead of reinvesting the proceeds, Lowder deposited the proceeds into his own bank account. To conceal his fraud, Lowder provided these clients with false statements of account. Between 2001 and 2009, Lowder stole in excess of one million dollars from his clients, which he used to fund his own comfortable lifestyle. As part of his plea, Lowder admitted that he did not claim the amounts stolen from his clients as income on his U.S. individual income tax returns from 2006 to 2009, despite knowing that he had an obligation to do so. There is never a time when it is okay to steal from someone, especially our seniors. IRS-Criminal Investigation is committed to finding these perpetrators and pursuing them to the full extent of the law, said Special Agent in Charge Erick Martinez. A sentencing hearing was set by Judge Robert Holmes Bell for May 29, 2013, at 8:45 a.m. Lowder faces a maximum penalty of 20 years imprisonment for his wire fraud and three years imprisonment for filing a false tax return. He will also be ordered to pay restitution to his victims. The investigation of this case was conducted by the Grand Traverse County Sheriffs Office, the Internal Revenue Service, and the FBI, who were assisted by the Michigan Office of Financial and Insurance Regulation.