On July 31, 2025, the State of Michigan charged Todd Bernstein with felony charges for insurance fraud. Bernstein is identified as a financial advisor in Michigan. State officials allege Bernstein submitted misleading information on annuity suitability applications on behalf of his elderly clients to conceal annuity “switching.”
Switching is when an advisor recommends the purchase of a new annuity or annuities with proceeds from early surrendered annuities.
Annuity switching can be a form of fraud and is rarely in the best interest of the annuity owner. There are very few legitimate reasons for an advisor to recommend liquidating an existing annuity and purchasing a new annuity with the proceeds. The annuity owner loses the accumulated value and greater liquidity of the older annuity. But the advisor reaps a large commission. Many states regulate such actions to prevent inappropriate switching.
Further, Bernstein markets his financial services as ABB Wealth Strategies. However, neither FINRA’s Brokercheck.org or the SEC’s Adviserinfo.sec.gov identify Bernstein or ABB as licensed.
To explain the charges, Michigan officials state in a press release, “Consumers must be able to trust financial professionals to act truthfully and in their best interests.” Switching annuities and falsifying documents run contrary to the best interests of annuity owners.
This post is intended for investor education and a comment on current events. Please contact Jeffrey Pederson about this post or its contents.
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