A former insurance agent has been ordered by the insurance commissioner of Wisconsin to return over $1 million that she stole from the estate of her late client.
In a decision recently released, state commissioner of insurance Theodore Nickel said that he agreed with an administrative law judge’s ruling that ex-insurance agent Blanche Berenzweig, 70, illegally misappropriated the annuity money of her client. Nickel also ordered Berenzweig’s insurance license – which she surrendered last year – be permanently revoked.
“We’re hopeful this case will serve as a warning to others who are considering taking advantage of vulnerable, elderly insurance consumers,” the commissioner added in his statement.
Berenzweig’s client, LeRoy Ern, died of advanced dementia in 2016; he was 92. Ern left everything to Berenzweig, including two annuities with a combined value of just over $1 million. According to state records, Berenzweig collected $276,648 from one annuity in May 2016 and another $734,467 from the second annuity a month later.
A statement from the state insurance commissioner’s office said that Berenzweig “engaged in multiple unfair trade practices involving an elderly consumer,” adding that she had appointed herself Ern’s power of attorney, effectuated personal financial transactions, and allowed herself to become beneficiary of the consumer’s annuities – all of which are violations of Wisconsin law.
Journal Sentinel reported that 11 of Ern’s 12 nieces and nephews are demanding that a court void his 2009 will. They argued that Berenzweig had pressured their uncle into making her the sole beneficiary.
Ern’s estate is worth at least $1.6 million; if his will is voided, it will go to his relatives. Court records also show that the annuities are currently frozen.
