AMZN was my 2024 granny tech stock I but in my other stock thread. https://www.elitetrader.com/et/threads/2024-stock-picks.377535/#post-5905480
WHO IS FUZZY PANDA AND WHY AREN'T WE FOLLOWING THEM???? Fuzzy Panda Research Terms & Conditions Contact Home Globe Life (GL): Executives Disregarded Wide-Ranging “Insurance Fraud” While They Received Millions in Undisclosed Kick-Back Scheme by Fuzzy Panda Research in Globe Life We are Short Globe Life. Uncovered Extensive Allegations of Insurance Fraud + Proof Management Knows & Has Not Stopped It Sales Agencies Known to Have Committed Insurance Fraud Accounted for >$200m of AIL’s ALP (>60% of AIL’s New Business) Wrote Policies for Dead People; Opened Policies for Fictitious People Forged Customer Signatures on Policies Withdrew Funds from Consumers Bank Accounts without Approval Indications of Actuarial Fraud – Faked Tests so Smokers Were Underwritten as Non-Smokers Growth driven by AIL sales teams with fraud Allegations of Illegal Kickbacks to Globe Life Executives – Sr. VP & AIL’s President of >$65 Million Globe Life (GL) is an $10 billion Life and Health Insurance Company that sells policies through multiple subsidiaries. The biggest subsidiary is American Income Life (AIL), which accounts for 39% of total premiums; and 50% of total underwriting profits. We uncovered extensive allegations of insurance fraud ignored by management despite being obvious and reported hundreds of times. Policies Written for Dead and Fictitious People; Forged Signatures; Funds Withdrawn from Consumers’ Bank Accounts without Approval Fictitious Bank Accounts used to Fund Numerous Fake Policies, so Agents hit their bonuses. We reviewed hundreds of pages of court documents and interviewed dozens of former executives and agents. We uncovered a whistleblower from the executive ranks who showed us where the fraud was hidden. We even went undercover to go through the recruiting process more than 10 times. We found that: The fraudulent insurance policies are NOT a one-off. It isn’t isolated to just one rogue sales team (like Arias Agency). Arias is just a small piece of this. We uncovered insurance fraud at many of AILs largest agencies and by AIL’s top producers. A former VP at AIL told us that he sent over 200 emails detailing fraud to executives, we have documents to prove it. “From 2017 on [the insurance fraud] became a lot more rampant and with a lot bigger numbers…you never had that before” Other formers and multiple lawsuits corroborated the fraudulent actions & behavior. Globe Life and AIL executives were involved in a bribery & kickback scheme that a lawsuit estimates netted them >$65 million. Kickbacks went to at least 3 senior executives who tried to obscure their ownership from regulators via shell LLCs and by listing his mother-in-law’s name. 60% of AIL’s 2023 new ALP came from sales teams known to be rife with bad actors. AIL accounts for 50% of Globe Life’s Profits We uncovered 16+ AIL agencies with corroborated fraudulent insurance production and we have the source for it via interviews, documents, emails, and more. These agencies account for >$200 million of 2023 ALP We unveiled an Instagram video of the 2022 top sales agent, who trailed sales figures for 51/52 weeks and AIL celebrated it. Former AIL VP told us it was obvious fraud. Reviewed lots of state regulator enforcement cases – to give you the sense of the tip of the iceberg – Texas sanctioned AIL agent for lying to investigators, South Carolina issued fines, Michigan sanctions and more Our Analysis indicate Globe Life and AIL’s MLM structure borders on an illegal Pyramid Scheme in Multiple States. Making up fake people for policies gets you paid & promoted while making fake recruits for the bottom of the MLM gets you fired according to an agent Discovered excessive amount of recruiting – Formers told us in 2022 >20,000 new sales agents joined AIL and the net gain at the end of the year was <200. We went undercover & were offered jobs to join multiple Globe Life sales agencies. Undercover Agents Offered Cash & Cocaine* During Verbatim Explanation of What We Believe to be an Illegal Pyramid Scheme Recruiters and current agents didn’t hide the MLM Structure. They explained our “Uplines” and “how recruiting new agents is more lucrative than selling policies.” They explained we can cheat on state insurance exams. Encouraged us to fake our own address and lie to regulators in an initial meeting. AIL’s Growth has been a mirage. Over the last 4 years: Sales teams that engaged in insurance fraud grew new ALP at a ~16% per year. The Clean & Non-questionable teams have DECLINED at a -0.5% DOJ Is Investigating Illegal Sales Practices Sales agents portray themselves as the new “Wolves of Wall Street” – and behave accordingly Drug use is rampant at some agencies. Multiple lawsuits describe a culture of sexual harassment where bosses: RAPE female subordinates, Masturbate in front of female subordinates, Demand oral sex in exchange for promotions and good sales leads And even give the date-rape drug to those who won’t play along. Women that report the behavior are retaliated against and their complaints are ignored. Toxic Culture Has Even Spawned a website: American Income Life Victims Warren Buffett Dumped the Stock Consumer reviews show they are being harassed by non-stop calls and the FTC will care. Questionable union use – AIL forces 1099 employees to join a union even though they get little to no benefits. This is illegal according to legal experts we consulted. Financials are questionable: Lapse rates in statutory filings are materially higher than peers and they don’t match the SEC filings. Lapse rates are running > 16% at AIL in the blue books. Churn in the Lapse rates reported in the blue books implies policy lives which are much shorter than those implied by GL’s DAC amortization. FASB changes have enabled aggressive accounting. GL seems to be taking advantage more than other peers. This accounted for 38%, 21%, and 10% of profits over last 3 years How has this happened at a company that’s been in the insurance business for 70 years? We learned from the former executives, agents and documents that fraud began spreading at AIL after Steve Greer became AIL’s CEO in 2017 and Dave Zophin became its president the following year. Our investigation revealed an exhaustive array of financial malfeasance that ramped up once Greer and Zophin took over. Members of Globe Life management know about it, too. Interviews with formers and internal emails make it clear that many executives at Globe Life and American Income Life have been complicit in allowing insurance fraud to persist. We even have reports of them being in sales offices and watching it happen. The organization’s structure is an MLM that mirrors a “pyramid scheme,” and former executives described the growing book of bad assets within Globe Life’s Book as a “Ponzi Scheme.” They told us that the bad agencies were forced to write more bad policies each year to keep the growth going and collect bonuses. If you thought it could not get any worse, American Income Life has also fostered an environment permissive of sexual assault, rape, racism, and widespread illicit drug activity. We believe multiple AIL agents and Globe Life executives will likely be going to prison for insurance fraud. We believe Globe Life’s CEOs have 2 choices: Clean House – Rectify past bad underwriting by reporting it to insurance regulators; Take the appropriate large write-downs to Book Value; and end the alleged “Ponzi Scheme” that has been growing within Globe Life’s and AIL’s Life Insurance Book once and for all. Defend & Protect Fraudulent Underwriters – Confirm that management has known what is going on the whole time. If they choose this then we believe even more people will be going to jail. We are Short Globe Life.
Wells came out defending them at $90, I almost got spooked out but added on spike to $92 after it was done cratering to $84.