I borrowed money from a client...

[rocco123]

What is the name of your state (only U.S. law)? California

I am a licensed life agent. I have a client that I actually never sold her an annuity or any life insurance product. However I did get her involved in a couple other inverstments that weren't regulated by the insurance industry.

I was in a tight spot and borrowed some money from her and in return gave her a signed promissory note.

Is this criminal or (just) an ethics violation? The family is upset and reporting me.

Thanks for the input.

[ErynSMA]

Originally Posted by rocco123

What is the name of your state (only U.S. law)? California

I am a licensed life agent. I have a client that I actually never sold her an annuity or any life insurance product. However I did get her involved in a couple other inverstments that weren't regulated by the insurance industry.

I was in a tight spot and borrowed some money from her and in return gave her a signed promissory note.

Is this criminal or (just) an ethics violation? The family is upset and reporting me.

Thanks for the input.

It is DEFINITELY an ethics violation, and you will likely lose your license.

What investments did you get her into that were not regulated by the insurance industry? What was the nature of the investments? How much money did you borrow? Are you paying it back?

The borrowing of the money in itself is not a criminal act, but I am curious about the nature of those investments and what the criminal implications of THOSE may be, if any.