Stevenson et al v. Massachusetts Mutual Life Insurance Company et al
Beck, Amsed & Stalpes, LLC is currently representing a Miles City, Montana family who was victimized by the predatory behavior of Massachusetts Mutual Life Insurance Company. The Stevenson family, long-time owners and operators of Stevenson & Sons Funeral Homes in Montana have initiated legal action against Mass Mutual, a former insurance broker, Joshoa Gardner, and several affiliated companies. Other named defendants include:
- Summit Financial Group A sole proprietorship and/or a d/b/a of Gardner.
- GP Capital Partners LLC
- The Penn Mutual Life Insurance Company
- The Burgess Group, Inc.
- The Penn Insurance and Annuity Company
The lawsuit, Stevenson et al v. Massachusetts Mutual Life Insurance Company et al, filed in the US District Court for the Missoula Division of the District of Montana, is based on the sale of $67.5 million worth of premium-financed life insurance policies. The Stevenson family alleges that these policies were presented to them by Gardner as “Responsible, safe, and tax-friendly estate planning tools” but ultimately burdened them with more than $8 million in additional costs due to premium interest and loans which far exceeded the policies’ face value.
The issue originated back in early 2014, when Gardner, who was at the time a registered agent for both Mass Mutual and Penn Mutual, persuaded Todd Stevenson of Miles City, Montana, to purchase these premium-financed life insurance policies. Garder later recommended that three other members of the Stevenson family establish irrevocable trusts to acquire additional policies.
These premium-financed life insurance policies are typically considered a high-risk strategy and involve borrowing funds from a third-party lender in order to cover the insurance premiums. These types of policies are often only suitable for high-net-worth individuals looking to preserve liquidity.
However, the lawsuit contends that these policies were not appropriate for the Stevensons, who are described in the claim as conservative, financially unsophisticated, and risk-averse morticians.
Additionally, the lawsuit alleges that the total financial contributions by the Stevenson family – including the debt service on the loans used to pay the premiums – surpassed the valuation of the policies by approximately $8 million.
The third-party lender that the Stevensons used, a firm called Burgess, was cited in the suit as allegedly being associated with Gardner. However, the details of this information are sparse.
Gardner, who is no longer a registered broker, according to the Financial Industry Regulatory Authority’s BrokerCheck, and the affiliated companies are accused of professional negligence, fraud, breach of fiduciary duty, and misrepresentation. The suit claims that Gardner and the involved entities failed to provide accurate information, disclose associated risks, or assess the appropriateness of the policies to the Stevenson family, which ultimately led them to financial ruin. The complaint states that as interest rates rose, the returns on Stevenson’s cash investments could not keep pace with the escalating costs of premium loans, interest, and service fees, leaving the family in a substantial financial deficit.
Beck, Amsed & Stalpes, LLC, a personal injury law firm based in Bozeman, Montana. The family is seeking compensation that includes the rescission of the contracts, restitution, punitive damages, and a full accounting of all payments made.