CA INS $1.6mn Elder Fraud

On Jun. 22, CA INS acted on insurance agent for elderly fraud.

  • Mark Malatesta was charged in Mar. 2018 and pleaded guilty to 23 felony counts.
  • Department of Insurance detectives arrested, in $1.6mn fraud scheme of elderly.

Alleged Violations

  • Falsified information on annuity applications, made $135k in illegal commissions.
  • Convinced senior victims to terminate investment, lost $45k surrender penalties.
  • Then sold them new annuities, for which they did not qualify due to senior ages.
  • insurers canceled the fraudulent investments, once discovered false information.


  • Defendant was sentenced to five years of formal probation, repay total of $281k.
  • Pay restitution of $110k to his elderly victims, and $171k to insurance company.
  • Revoked insurance license, no longer allowed to work within finance or insurance.