NYTimes Companies Pitch Insurance and Investments to Soldiers in Barracks

[Columbia]

http://www.nytimes.com/2004/07/20/business/20military.html?hp

COMPANIES PITCH INSURANCE AND INVESTMENTS TO SOLDIERS IN BARRACKS
Mon Jul 19 2004 18:49:59 ET

An in-depth investigation by the NEW YORK TIMES has found that a number of financial services companies are using questionable tactics on military bases to sell insurance and investments of doubtful suitability to the people in uniform who buy them!

MORE

Reporter Diana Henriques is set to detail the results of the paper's six-month examination, newsroom sources tell DRUDGE, including how investment companies have solicited soldiers in their barracks and while soldiers were on duty, all in violation of long-standing Defense Department regulations.

MORE

Agents have made misleading sales pitches to "captive" audiences, sometimes posing as veterans benefits counselors and independent financial advisers.

Internal military investigations have even cited specific companies and agents, but almost no action has been taken to punish those responsible or to do more to protect those who are vulnerable, Henriquesis planning to report in her 3,500-word story, set for release on Tuesday Page Ones.

Developing...
________________________________

I have a vested in this story as I was taken by this exact scenario several years ago to the tune of about a thousand dollars. I know many others who were taken by more than that and may still be getting shafted.

Their trick is to lure you into believing you are starting an investment account like a 401(k) when in fact it is a cash-value life insurance policy (remember that servicemembers already have a term life insurance policy provided by the government). At the end of the year, you actually have less money in the account than you put in after the premium is charged to the account. On top of that, they automatically debit all this from your checking account every month AND they do not stop this doing this despite repeated letters and calls to cease doing so.

These companies are likely bilking millions from servicemembers around the world. Military pay is not that great as it is and with servicemembers dying almost daily in Iraq, it's an atrocity that these companies are literally STEALING money some of us have died for and our families desperately need.

In case anyone is wondering, this is the agent and company who stole my money:

Vince D’Aliesio

ARMED FORCES BENEFIT ASSOCIATION
909 North Washington Street
Alexandria, VA 22314

Phone: [phone]
Fax: [phone]
Email: [e-mail]

Let them know how you feel.

[mn9driver]

1. This has been going on for many years.

That doesn't make it any better, but I fell for this pitch back in 1981 during my Navy time. There are a few outfits out there that are semi-legit, but they are all expensive and not really suited for junior military folk. The free steak dinner was good, though.

[newscaster]

3. Why Not?

In as much as the Pentagon wont let these guys come home, they have become a captive audience for the salesmen.

:wtf:

[mandyky]

2. CNN mentioned early today

when talking about travel insurance that some companies verging on bankruptcy are still selling insurance. I wonder if that too could happen with Life Insurance...

Why do commanding officers allow such exploitation of oour troops?

[mn9driver]

5. CO's let it happen for a couple of reasons,

not good ones, but here they are:

1. These people are authorized to do this from higher up in the chain of command. Even if you suspect they are ripoff artists, you put your career on the line by denying them access to your troops.

2. It's an event! When you're on station, "Anything Different Is Good." Complacency kills, and it is a huge challenge to keep young kids alert enough to stay alive when the shit suddenly hits the fan.

[SidDithers]

4. No offence, but if Drudge is referencing a NYT article...

why not just post the link to the NYT article. Don't give that so-called journalist any more hits than he deserves.

Here it is: (free reg required, but well worth it)

http://www.nytimes.com/2004/07/20/business/20military.html?hp

Sid

[Columbia]

6. Thanks for the link

Didn't realize it was up already.

[UpInArms]

8. and if you want to read the article

and not register, try www.bugmenot.com

[Columbia]

7. Morning bump

[Mayberry Machiavelli]

9. The Military Academy types were key in pimping these companies

and services when I was in training. Somehow these companies must have their hooks into the academies, because the West Point and Annapolis folks I trained with were front men for USPA/IRA (one of the big firms hawking this stuff mentioned in the story, now going by another name).

I never bothered to find out too much about it, but it had too much of a multilevel marketing odor to it and I just avoided their presentations.

[relaf]

10. similar experience

When I was on active duty from 98-02, we had this guys in the barracks peddling cash value life insurance, magazines, and other stuff. I usually told my soldiers why these investments sucked(or why the magazines were overpriced). They basically prey on uneducated enlisted(some officers too). Luckily, I have a degree in business, so I knew all about it.....

Oddly, when I was at OBC in fort sill, Multi-level marketing amongst west point grads had run amok. I think in my platoon of 30, ten guys were pitching it at one point. Needless to say, many of them learned the hard and best way about why MLM's suck. Anyone here have similar experience? Heard of Prepaid Legal Insurance, at least that is what they were pitching back in 98.

M