Michigan Insurance Agent Pleads No Contest to Fraud and Agrees to License Forfeiture

Todd Bernstein, a 67-year-old insurance agent from Birmingham, Michigan, has pleaded no contest to four felony counts of insurance fraud in Oakland County. The charges stem from allegations that Bernstein submitted deceptive annuity applications on behalf of elderly clients, concealing that funds used to purchase new annuities came from early surrenders of previous policies.

Each fraud count carries a possible four-year prison sentence. Bernstein’s conduct targeted clients over the age of 65, raising concerns about suitability and disclosure requirements in annuity transactions. Investigators from the Michigan Department of Insurance and Financial Services (DIFS) worked alongside the Attorney General’s office to bring the case forward.

As part of a plea deal, Bernstein agreed to pay $107,918.13 in restitution and voluntarily surrendered his insurance license, ending his ability to sell insurance products in the state. Sentencing is scheduled for October 16, 2025, before Judge Mary Ellen Brennan in Oakland County’s 6th Circuit Court.

This case underscores the importance of ethical standards in the financial and insurance industries, particularly when working with senior populations. State officials have reiterated their commitment to consumer protection and urged the public to report suspected insurance fraud to DIFS.