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West Virginian Farming Family Alleges Accountants and Financial Giants Made Off with Farmer's Money

Posted on: Wednesday, 6 May 2009, 16:16 CDT

JEFFERSON COUNTY, W.Va., May 6 /PRNewswire/ -- Wall Street has come to Main Street in Jefferson County, West Virginia where a farming family has filed lawsuits charging that they were victims of financial scams reminiscent of those currently contributing to Wall Street's woes.

Glendwell and Jo Ann Lloyd, an elderly farming family couple from Jefferson County, West Virginia, have sued West Virginia accountants L. James Nichols and Nichols DeHaven and Associates, insurance giant Massachusetts Mutual Life Insurance Company, and a number of MassMutual agents. The lawsuits charge that the Lloyds sought help from their long-time accountants Jim Nichols and Nichols DeHaven Associates to protect proceeds from sales of family farm land. The accountants recommended and arranged with MassMutual and its agents a complex financial program involving a so-called "412i" pension plan that included expensive insurance and annuity policies. Unfortunately, the Lloyds contend, they were not qualified for the plan. It did, however, require them to pay huge premiums to MassMutual and generated hundreds of thousands of dollars in commissions for MassMutual's agents, including the Lloyd's accountants who did not disclose that they would benefit so handsomely.

To tailor this ill-suited plan to the Lloyds, the accountants and insurance agents allegedly falsified information and forged signatures on some insurance and annuity documents. They even fraudulently amended previously-filed tax returns to reclassify income, the Lloyds charge -- all to give the false appearance that the Lloyds qualified for the elaborate pension plan. MassMutual's own insurance agents have blamed MassMutual's attorneys for directing the Lloyds' accountants to alter their tax returns without the Lloyd's full knowledge and consent. The Lloyds contend that Mass Mutual had reason to know of the misconduct because it knew of other wrongdoing by the agents involved, including a long history of bad sales conduct by one agent.

The Lloyds are claiming millions of dollars for losses they have suffered, as well as punitive damages to hopefully deter this type of outrageous conduct in the future that damages families and small business in West Virginia and elsewhere.

The lawsuits are pending in the Circuit Court of Jefferson County, West Virginia before The Honorable Gina Groh, and the Lloyds are represented by the West Virginia law firm of Hammer, Ferretti & Schiavoni and the Virginia law firm of Charapp & Weiss, LLP. Brad Weiss of Charapp & Weiss has expressed his clients' outrage over what they have learned so far from the lawsuits:

"Like so many small family owned businesses, the Lloyds trusted their accountants for protection of assets the family built through many years of farming and hard work. The Lloyds expected straightforward and honest advice. However, they charge, they fell victim to a scheme where their accountants and those they worked with earned hundreds of thousands of dollars in commissions by selling a complex financial plan which was never appropriate for the family. The Lloyds look forward to having a West Virginia jury consider what they have lost and suffered because of the greedy and callous behavior of those they trusted. We know through information and facts learned in these lawsuits to date that there are other victims who have suffered similar results, and we anticipate demonstrating a pattern and course of conduct before Judge Groh and a jury. Indeed, given that these Massachusetts Mutual agents are licensed in several other states, the Lloyds are concerned about similar misbehavior beyond the borders of West Virginia and it is their hope to alert others through their efforts in this lawsuit. We anticipate that a Jefferson County jury will send an appropriate message to Wall Street about scamming those people living on Main Street."

SOURCE Charapp & Weiss, LLP

Source: PR Newswire

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