'Twisting' Scam Lands Grove Insurance Agent In Federal Prison
TULSA, Oklahoma - A former insurance agent and owner of Grand Lake Investments and Insurance in Grove is headed to federal prison.
Danny Williams, the U.S. Attorney for the Northern District of Oklahoma says 52-year-old Gary Hibbing caused his clients to lose $505,126.43 through a scheme called "twisting."
Williams said twisting is an insurance industry term that refers to the fraudulent practice by an insurance agent of convincing a client to surrender an existing annuity in exchange for a new one. Because there is usually a penalty for early termination of an annuity, the client often loses money while the agent makes money on a new commission.
Hibbing pleaded guilty earlier this year.
Tuesday he was sentenced to 27 months in a federal prison and was ordered to pay restitution.