Charleston man says he was victim of fraudulent investment scheme

By Kyla Asbury | Apr 26, 2010

CHARLESTON -- A man is suing seven companies and five individuals for after he claims they collectively orchestrated a fraudulent investment scheme involving the sale of high dollar equity-indexed universal life insurance policies.

OM Financial Life Insurance Company; Paramount Financial Services, Inc.; Jerry L. Hayes; the Institute for Enduring Wealth, Inc.; France C. Gahl; the West Virginia Educational Institute, LLC; Timothy Sparks; First Equity Consultants, LLC; Equity First Mortgage, LLC; Solution One Mortgage, LLC; and 20 unknown defendants were named in the suit.

James W. Strawn claims he fell prey to the scheme orchestrated by the defendants and lost approximately $40,000, that he had invested in an OM Financial Life equity-indexed universal life insurance policy, according to a complaint filed March 29 in Kanawha Circuit Court.

Strawn is seeking compensatory and punitive damages; that he court find the defendants guilty of misrepresentation by concealment, negligent misrepresentation, breach of fiduciary duty, breach of contract and participating in civil conspiracy; and a permanent injunction prohibiting the defendants from engaging in improper conduct. He is being represented by Stephen B. Farmer, Robert A. Campbell, R. Chad Duffield, Phillip McCallum and Rodney Miller.

The case has been assigned to Circuit Judge Jennifer Bailey.

Kanawha Circuit Court case number: 10-C-581

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