PITTSBURGH – A Pittsburgh man and U.S. Navy veteran who invested more than a half-million dollars in annuities and federal pensions claims several investment providers, including a South Carolina law firm, ran a scheme to defraud investors and specifically targeted veterans.
According to the Sept. 10 filing in the U.S. District Court for the Western District of Pennsylvania, plaintiff Daniel Seale filed suit against defendants Annuity FYI; Performance Arbitrage; Financial Products Distributors; David Woodward; Andrew Gamber; Life Funding Options; Kate Snyder; Michelle Plant; Upstate Law Group LLC and Candy Kern-Fuller alleging violations of the Securities Act, Pennsylvania Securities Act and Unfair Trade Practices Act, gross negligence, common law fraud and misrepresentation.
"Collectively, defendants maintained a network of web sites designed to attract financially desperate veterans seeking a source of ready cash," Seale's lawsuit states. "The defendants promised veterans that they will find buyers, like Mr. Seale, to purchase the stream of the veteran's pension income.
"Defendants misrepresented the investments products to plaintiff and omitted to provide material information concerning the investment products to Mr. Seale," the lawsuit states.
The suit states between 2016 and 2017, Seale, a retired veteran and current business manager for a private school near Pittsburgh, contacted Annuity FYI regarding investments. Seale alleges he purchased a Penn Mutual investment product and invested in nine federal pension contracts. According to the suit, all but three of Seale's investments are now in default.
According to Seale's complaint, he was told by an Annuity FYI agent that “An individual who receives a federal pension, typically a military pension, would rather have a lump sum rather than the monthly stream of income. We have an exclusive contract to find an individual who needs income stream in exchange for a lump sum and essentially match up needs," the suit states.
Seale seeks damages for the lost growth he would have received for properly managed investments and punitive damages among other relief.
Seale is represented by Vicki Kuftic Horne and Nicole Daller, both of Pittsburgh.
U.S. District Court for the Western District of Pennsylvania case number 2:19-cv-01146