An August 5, 2006 AP article details a $70 million securities fraud settlement that will help Coloradans who fell prey to a company that targeted military personnel. The Texas-based company, American-Amicable Life Insurance Co. reportedly duped 90,000 consumers, including 70,000 military personnel.
“Sales agents misled military personnel to believe they could earn $1 million in 20 years if they put their money into the investment fund,” the complaint said. “At the same time, agents denigrated other investments, saying that mutual funds, bank savings accounts and government bonds did not make sense.”
The story reports that 1,388 Colorado consumers who bought into the Horizon Life plan will receive cash or other settlement benefits. The company neither admitted to nor denied the SEC allegations of investment fraud.