Scam watch: Retirees bilked, loan modifications, music contracts

Here is a roundup of alleged cons, frauds and schemes to watch out for.

Retirees bilked – A former Central California life insurance agent has been sentenced to six years in jail after her conviction on four charges of stealing from an elderly person, the California Department of Insurance said in a news release. Sharon Harrelson, 55, of Clovis was arrested after a two-year investigation by the Department of Insurance and sheriff’s deputies in Fresno and Madera counties. Authorities said she defrauded customers of an insurance agency where she worked as an agent, telling them they needed to pay her a service fee that she was not entitled to collect. After she was fired by that agency, Harrelson started her own firm and defrauded other retired people, state officials said. One victim, a woman in her 80s, gave Harrelson $60,000 to invest in certificates of deposit but Harrelson instead deposited the money in her personal checking account, insurance officials said. Another victim paid Harrelson $8,500 as a “coaching fee” for retirement planning, but Harrelson never provided the services, officials said.

Loan modifications – The operators of a fraudulent loan modification business have been ordered to pay more than $4 million in penalties and restitution to victims, California Atty. Gen. Kamala D. Harris said in a news release. Statewide Financial Group Inc., based in Orange County, had defrauded more than 1,000 customers of more than $2 million, Harris said. The firm charged fees to homeowners by promising to negotiate new loan terms with banks, but did not provide the services, Harris said. “These defendants took advantage of vulnerable people in extremely difficult circumstances, including many who faced imminent loss of their homes,” Harris said.

Music contracts – Federal agents have arrested a Chicago man after a grand jury indicted him on wire fraud and money laundering charges related to an investment scheme that defrauded investors out of more than $2 million. Prosecutors contend that Michael Steven Banuelos told investors that he would use their money to help musicians obtain lucrative recording contracts that would enable him to pay investors significant profits. Instead of using the money to secure these deals, he spent it on personal expenses, including luxury cars, private jets, jewelry and a country club membership, prosecutors said.

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