Massachusetts seniors who fell for a reverse mortgage plot will receive refunds after Attorney General Maura Healey announced that the state had reached a settlement with alleged perpetrator Direct Finance Corp and its employee, as well as an agent.
The seniors will receive more than $130,000 in refunds from investments they made through a reverse mortgage scheme that was allegedly initiated by Daniel Matthews and insurance agent James Moniz.
Legal Newsline said in a report that the two were able to convince a number of their elderly clients to take out reverse mortgages, which were then invested in “unsuitable variable annuities.”
Moniz reportedly encouraged his clients to take out these mortgages, which are available to seniors 62 years and above, while employed by John Hancock Life Insurance, through Direct Finance.
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“We found that these defendants took advantage of elderly homeowners who spent decades building equity in their homes,” Healey said in the report. “My office is focused on stopping the financial abuse of seniors.”
Reverse.org says that reverse mortgages are insured by the Federal Housing Authority, and allow beneficiaries to convert the equity in their homes into cash with no monthly mortgage payments.
John Hancock terminated Moniz as reports of his conduct reached the firm.
Authorities have also restricted the insurance dealings of Moniz, Matthews and Direct Finance arising from charges of improperly associating reverse mortgages with investing in annuities.
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