An insurance agent in Ventura pleaded no contest to grand theft by false pretenses, theft from an elder, and money laundering; the man in question stole about $2 million from two elderly women, according to a news release by the California Department of Insurance published November 23.
Joseph Anthony Mele, 30, is facing a sentence of up to 30 years, and he will have to pay $2.4 million in recompense and fines.
Mele was investigated by the Department of Insurance and Santa Barbara police in October 2014 after the two received a tip regarding alleged elder abuse. Mele was a financial planner for a 93-year-old lady, and he managed to convince her to reinvest her retirement portfolio with him.
In June 2007, Mele sold the lady around $1.2 million in long-term annuities. He then rewrote the annuities over seven years to receive more commissions "under the guise of providing better returns," authorities remarked. Officials noted that he earned $295,000 in commissions, while causing his client to lose over $500,000 in surrender penalties.
The accused also wrote $800,000 in unauthorized checks addressed to himself from the woman’s account so that he could invest the money in her stead, officials said. Bank records, however, show that the money was instead used for Mele’s personal expenses, which included entertainment and gambling.
Another woman, aged 74, was also allegedly swindled by Mele. She had lost $80,000 in surrender penalties, as well as premium and interest earnings after he persuaded her to surrender her annuities ahead of schedule.
Mele is set to be sentenced next year on January 4, in Santa Barbara County Superior Court.
