Financial Advisor Charged with Insurance Fraud in Michigan

News Summary

Todd Bernstein, a 67-year-old financial advisor from Birmingham, Michigan, has been charged with four counts of insurance fraud involving elderly clients. Following an investigation by the Michigan Attorney General’s office, Bernstein allegedly submitted misleading annuity applications, raising serious concerns about consumer trust in financial advisory practices. The case emphasizes the importance of integrity in the financial services sector, particularly for vulnerable populations. Bernstein’s arraignment took place on July 31, 2025, and a following court session is scheduled for August 12, 2025.

Birmingham, Michigan – Todd Bernstein, a financial advisor from Birmingham, has been charged with four counts of insurance fraud, following an investigation by the Michigan Attorney General’s office. The charges were publicly announced on July 31, 2025, highlighting serious allegations concerning the integrity of financial advisory practices.

Bernstein, aged 67, is accused of submitting misleading annuity applications for clients over the age of 65. The alleged fraudulent activities involved failing to inform authorities that the new annuities were funded through the proceeds of early surrendered annuities, which could potentially mislead clients and regulatory bodies. These actions raise significant concerns, particularly as they concern elderly clients who often rely heavily on financial advisors for trustworthy investments.

The Attorney General of Michigan, Dana Nessel, stressed the importance of consumer trust in financial advisors. She pointed out that such professionals hold a duty to act honestly and in their clients’ best interests. The charges against Bernstein underscore the ongoing commitment of the Attorney General’s office to safeguard Michigan residents from unlawful business practices that could exploit vulnerable populations.

Bernstein has already been arraigned via a preliminary hearing before Magistrate Julie Nelson-Klein at the 48th District Court in Bloomfield Hills. The next court session for Bernstein is scheduled for August 12, 2025, where the case will continue to be addressed in front of Judge Diane D’Agostini.

Anita Fox, the director of the Michigan Department of Insurance and Financial Services (DIFS), emphasized the necessity for consumers to seek the guidance of licensed financial professionals, particularly in matters of investment and insurance. DIFS is actively engaged in protecting Michiganders from misconduct by undertaking investigations and prosecutions against breaches of consumer trust within financial services.

The concern over fraudulent activities in this sector is shared broadly among Michigan’s regulatory bodies. As part of its consumer protection initiatives, DIFS encourages Michiganders who suspect fraudulent actions to report their concerns either through an online platform or by calling the DIFS hotline at 877-999-6442 during business hours. This proactive approach aims to fend off potential exploitation and ensure clarity and integrity in financial dealings.

In the broader context, the situation involving Bernstein reflects a growing trend of scrutinizing the actions of financial advisors, particularly those who cater to older populations. The financial services industry has a responsibility to maintain rigorous ethical standards, especially given the vulnerable nature of many clients who may be ill-equipped to identify fraudulent behaviors.

As the case develops, it remains crucial for the public to remain informed and vigilant when it comes to financial dealings. Educational initiatives led by state agencies may serve to bolster consumer awareness about recognizing warning signs of fraud and thoroughly vetting financial advisors before entrusting them with personal finances.

The rapid progression of this case will be closely monitored by both the public and financial experts alike, with implications for how financial advice and services are regulated in Michigan and beyond.

Deeper Dive: News & Info About This Topic

• CBS News: Michigan Financial Advisor Charged with Fraud
• Detroit News: Financial Adviser Charged with Insurance Fraud
• Insurance Business: Michigan Lawmakers Push Major Insurance Fraud Crackdown
• CBS News: Michigan Unemployment Fraud Scheme Guilty Plea
• Click on Detroit: $19 Million Insurance Fraud Scheme in Michigan