Thursday’s second editorial urges the
state Department of Insurance to open a new investigation into the activities
of salesman Rick McDavid, whose exploits were chronicled by David Wren this
past Sunday:
It was hard to read reporter David
Wren’s article this past Sunday, detailing the financial ruin of dozens of
local seniors in a complex insurance and mortgage plan, without becoming
outraged and angry. Where was the state? Aren’t those selling insurance
supposed to be regulated? Why was this allowed to continue for so long?
The state Department of Insurance, in
fact, opened two investigations into the actions of salesman Rick McDavid, who
it must be said has not been convicted of any wrongdoing and maintains he did
nothing illegal. Both of those investigations – one in 2011 and one in 2012 –
were dismissed quickly after McDavid said he didn’t do anything wrong.
In closing the second case, the
investigator said that the matter was ended at least in part because of a lack
of supporting documentation. That’s perhaps understandable, if frustrating. It’s
hard to prosecute or investigate wrongdoing if you’re not sure what exactly is
being alleged. But some of that blame may lie with the Insurance Department,
which it appears never asked for more information beyond the standard complaint
form before dismissing the cases. Now that reporter David Wren and attorney Sid
Connor have done the hard work of pulling these stories together and
illustrating their common threads, we hope the Insurance Department will
rethink its former summary dismissals.
Clearly, something went very wrong
for the many victims involved in this saga. McDavid’s purported actions were at
the very least immoral, financing a lavish lifestyle by taking advantage in
many cases of vulnerable seniors willing to trust a person referred to them by
a fellow church member or relative. Nevertheless, it may yet turn out that he
actually did nothing illegal. If that’s the case, the legislature should get
work on laws that would prevent future unscrupulous copycats. The first step,
however, should be another probe by the Insurance Department, and soon, this
time giving McDavid’s activities more than a cursory glance.
Meanwhile, if nothing else, the story
reminds us once more of lessons that are never too old to be learned again: If
it sounds too good to be true, it is. Read it before you sign it. Don’t let
yourself be bullied into signing anything you don’t understand, especially when
it affects your personal finances. And don’t put all your faith in a handshake
and a smile.
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