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Dan's Blog

Arrested Development 👮

December 8 2020

This is not an Onion story. The Newport Beach, California owner of Tax Deferred Services, a firm that provides 403(b)/457(b) plan compliance for more than 300 California school districts was arrested in what the California Department of Insurance called a “$4 million securities fraud scheme.” 

Robert Andrew Lotter, which sounds a little too close to Otter for my liking, was arrested along with Charles Albert Major, a licensed insurance agent, for allegedly defrauding more than 20 victims of more than $4 million. They reportedly sold victims ownership shares in two companies owned by Lotter: eAgency, Inc. and Mymobilewatchdog, Inc. Bail was set for $4 million and $2 million respectively. 

Classic 403(b) Sales Tactic Deployed

Victims were allegedly contacted via R.A. Lotter Insurance Marketing Inc., another firm owned by Lotter. According to investigators, some of the victims were led to believe this company was affiliated with the California Teachers Retirement System (CalSTRS). This is a classic 403(b) sales agent tactic. It is how many teachers are duped into investing in high-cost 403(b) products.

Give TDS the Boot?

If these charges prove to be true we urge every single California school district currently using TDS to seriously re-evaluate their relationship with this firm. At the very least maybe check in with Jason Bateman and Ron Howard. Also, check the banana stand. 

Stay wise and well.