A financial advisor from Michigan is facing serious charges after being accused of insurance fraud. Todd Bernstein, 67, from Birmingham, was arraigned on July 30 in Bloomfield Hills. He stands charged with four counts of insurance fraud, each carrying a possible four-year felony sentence.
The allegations claim that Bernstein submitted misleading information on applications for annuities, which are financial products designed to provide income, often used by retirees. His clients were all over the age of 65. Prosecutors say Bernstein hid the fact that new annuities were being bought using money from annuities that had been cashed out early. This kind of misrepresentation violates insurance laws meant to protect consumers.
The Michigan Department of Insurance and Financial Services helped with the investigation. Attorney General Dana Nessel emphasized the importance of trust between financial advisors and their clients. She said her office is committed to stopping illegal and harmful practices that can hurt Michigan residents.
Bernstein’s next court date is set for August 12 before Judge Diane D’Agostini in the same district court. This case serves as a reminder that financial professionals must be honest and transparent, especially when dealing with older clients who depend on them for security and guidance in managing their money.