GALLAGHER SUSPENDS AGENT FOR MISLEADING
PARENTS TRYING TO SAVE FOR THEIR CHILDREN’S COLLEGE
Chief Financial Officer Tom Gallagher has suspended the licenses of an
agent who misrepresented insurance policies to consumers, making them think
they were saving money for their children’s college funding.
Franz Caville Wallace III, 54, of Jacksonville, agreed to a one-year
suspension and restitution to settle a 13-count administrative complaint
that found he had misled a dozen consumers into buying life insurance
policies by telling them the policy was a “savings-type account “ that could
later be used in its entirety to pay for college expenses. He failed to
disclose that the only way to access the money was through an
“These parents were looking for a way to invest in their children’s future,
and this individual sought to steal their children’s dreams,” said
Gallagher, who oversees the Department of Financial Services which conducted
the investigation that led to the charges.
Gallagher also ordered Wallace to serve a year on probation following the
one-year suspension and to pay $10,000 in restitution to the victims.
Investigators with the department’s Bureau of Investigation said Wallace
induced customers to buy a so-called “flexible life accumulator” insurance
policy, issued by the Southern Security Life Insurance Company. Wallace told
the consumers that this product constituted a college savings plan for their
children. In addition to failing to disclose that the only way to access the
money was through a loan, Wallace also failed to disclose that a portion of
their monthly premiums was being applied as premium for life insurance
policies on their children.