DCBS Media Release
May 26, 2005
State revokes Tigard man's insurance licenses
The Oregon Department of Consumer and Business Services has revoked the insurance licenses of a Tigard man who collected $600,000 from selling bogus annuities.
Jay D. Witbeck did not admit to the allegations but conceded DCBS has enough evidence to prove its case. He waived his right to a hearing and consented to the revocation of his individual insurance license. He also agreed to revocation of the business entity license for Senior Benefits Group, LLC, in Tigard, of which he is the sole member.
An investigation by the Insurance Division of DCBS found that Witbeck sold six contracts to elderly Oregon residents that purported to be annuities jointly issued by American Equity Investment Life Insurance Co., a licensed insurer in Oregon, and the Hubbell Charitable Organization, a purported charitable operation established by Witbeck. He was not authorized to issue annuities on behalf of American Equity and the insurer never issued the annuities.
Witbeck collected about $600,000 from the six victims. He was unable to account for all of the money, but told the Insurance Division that he invested most in stock options and used some to pay expenses for the Hubbell Charitable Organization.
Witbeck had been licensed in Oregon as an resident producer (agent) since 1990 and was authorized to sell life and health insurance. Senior Benefits Group had held a business entity insurance producer's license since 1998.
The Insurance Division collaborated with the Charitable Activities Section of the Oregon Department of Justice in the Witbeck investigation and supports efforts to obtain restitution for the victims. The Department of Justice filed a civil suit against Witbeck in March 2005 alleging he created a bogus charitable operation to fraudulently solicit nearly $1 million from three elderly victims.