Former Advisor Faces Lawsuit Over Mishandling of Premium-Financed Life Insurance Plan

Posted on January 9th, 2025 at 2:32 PM
Former Advisor Faces Lawsuit Over Mishandling of Premium-Financed Life Insurance Plan

From the desk of Jim Eccleston at Eccleston Law

Joshua L. Gottlieb, barred by FINRA in 2017, faces a lawsuit alleging significant financial harm to a client following the sale of a premium-financed indexed universal life (IUL) insurance program. The complaint alleges that Gottlieb promoted an IUL policy as a retirement solution with a $12 million death benefit for the heirs, according to ThinkAdvisor.

Gottlieb allegedly promised the policy would yield $250,000 annually while requiring only a $50,000 yearly investment. The suit further alleges Gottlieb's firms failed to pay premiums and eventually caused the lending bank to foreclose on the policy, resulting in Alldridge’s financial loss.

According to ThinkAdvisor, the complaint claims that, over nearly a decade, Gottlieb reassured the investor that the plan was “working” and that all premium payments were up to date. However, in 2023, the investor allegedly first learned that Gottlieb had missed payments, depleted the policy’s cash value, and led to foreclosure.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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