Kenneth Murry Rossman, 63, officially accepted a plea deal this afternoon in a federal fraud case involving co-defendant and prolific annuity seller Phillip Roy Wasserman.
The Annuity King, described in marketing materials, Wasserman, 64, protests his innocence and is expected to be tried in Florida in the fall. If convicted, he faces up to 20 years imprisonment for postal fraud, transfer fraud and tax evasion.
The government is seeking a monetary verdict of at least $ 6.3 million, court documents said the proceeds from the indictment were raised.
“The government will be very embarrassed in this process,” Wasserman told InsuranceNewsNet today via text message. “It’s an absolute frame job on behalf of an above-the-law IRS agent and the government.”
According to court documents, Rossman pleaded guilty to one case of postal and wire fraud conspiracy and of “assistance and assistance in preparing and filing fraud and false tax returns” in one case. The two counts have been behind bars for a maximum of eight years.
Rossman admitted receiving $ 203,428 of income that was not reported on his tax return. Rossman’s plea deal satisfies all of his charges on the case, court documents read.
In return for the plea, Rossman agrees to “cooperate fully” with the government in investigating and prosecuting others and giving evidence, court documents say.
FastLife insurance
A first indictment, unsealed in June 2020, accused Wasserman and Rossman of conspiracy to commit wire transfer fraud and postal fraud, as well as substantial wire and postal fraud counts. A substitute indictment was brought in November 2020 for filing false income tax returns on wire transfer fraud and postal fraud charges.
Wasserman has operated investment firms in the Sarasota, Florida area under a variety of names for years, including Phillip Roy Financial Consultants and Phillip Roy Financial Services. He has held investment seminars on annuity and life insurance attended by thousands of Florida seniors.
Rossman, a certified public accountant and licensed insurance agent, has recruited investors and prepared tax returns that conceal negative tax information from both investors and the Internal Revenue Service, prosecutors said.
The first indictment alleged that Wasserman’s new insurance company, FastLife, had convinced older investors to liquidate traditional investments and raise funds for their life insurance policies in order to generate money for the new business.
These investors have not been informed of redemption fees and other costs associated with the liquidations. Wasserman used the investors’ money to make payments to previous investors in the FastLife company as well as to victim investors in its previous hedge fund and real estate fund companies, the US Attorney’s Office in Tampa said.
Allegedly lavish lifestyle
In court documents, prosecutors allege Wasserman used some of the investors’ money to fund a lavish lifestyle that included luxury residences, high-end vehicles, jet skis, jewelry, entertainment, gambling, retail stores, home improvement, personal insurance, and other expenses.
Wasserman denied any money had been spent, saying he could book $ 6.3 million all of them. Wasserman’s defense team includes several retired detectives or former FBI agents who are expected to testify about the financial dealings in question.
Wasserman also passed a polygraph test conducted by a former FBI agent, he said and plans to call between 265 and 600 witnesses at his trial.
InsuranceNewsNet Senior Editor John Hilton has reported on business and other topics every day for more than 20 years. John can be reached at [email protected]. Follow him on Twitter @INNJohnH.
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