is globe life a pyramid scheme? (insurance agent reacts)

All right, so ladies and gentlemen, Globe Life shares literally plummeted yesterday. We're Talking about a 50% drop for globe Life shares on the New York Stock Exchange. I'll just open up one of these articles here. It's rebounded about 10%. But basically what happened is they got accused of widespread fraud and basically running a pyramid scheme. Right. So in this video I'm going to kind of like break down what happened. We're going to be answering the question, is Globe Life is American Income Life a pyramid scheme? And kind of just looking at, you know, what is actually going on. Right. So basically stock for Globe Life, one of North Texas largest insurance providers, lost more than half of its value on Thursday after allegations of potential fraud by a group called Fuzzy Panda Research. So let's figure out what on earth is Fuzzy Panda Research and what actually happened. Right, so before it was about $100 per share and it actually dropped down to 3,885 per share at 3:05pm so basically they got accused of fraud. The company lost like $5 billion of value in just a couple hours. And some group called Fuzzy Panda Research has taken a short position against ail, against Globe Life. And you know, basically they put out this video and they accused them of being a pyramid scheme and you know, having widespread fraud. So let dive into what the actual article is and then there's also a video that we're going to watch. I'm just going to kind of briefly overview this and then we're going to talk about, you know, what the video actually is. Right. So basically what they're essentially accusing them of is being a pyramid scheme. So let's see if we can click on this link.

So let's see. Yeah, so here's the video on YouTube which I'm going to open up here and play for you guys. So let's open this up and we're gonna kind of react to this. Now this video already has 13,000 views and was posted one day ago. So I'm a life insurance agent. This is pretty much gonna be my reaction to this and what my thoughts are. So let's start this over from the beginning and we're gonna kind of go through this and I'm gonna, you know, break this down as we're going through.

We are short Globe Life interviews with dozens of former employees and analysis of hundreds of documents revealed widespread fraud at one of America's biggest life insurance companies and its largest subs.

Alright, so when they say there is widespread fraud, to be honest with you, Guys, I'm not going to name any names of any insurance companies, but from talking to a lot of agents, this is something that I don't think, you know, I don't, I can't confirm or deny if this is going on at Globe Life. I have no idea. I guess we'll see what, you know, comes out in the next few weeks or a few months. But this is a thing that actually goes on at a lot of agencies where, you know, people will just falsify documents to end up writing a policy. So, so let's keep listening to this.

City area, American Income Life, which sells life insurance to working class Americans.

Right. And so real quick, Globe Life is like the overall company and then American Income Life is kind of like the, the agency or the imo, which they, I think they make up what they're about to tell us.

Income Life is so important to Globe Life that it generates 50% of total profit.

Yeah. So American Income Life literally generates like 50% of their total profits. So I've met a lot of people that have worked at ail. I know a lot of customers that have bought Globe Life right from, from our agency. So let's kind of hear what they have to say here.

Former employees we've interviewed told us that American Income Life sales reps forge customer signatures to write fake policies. Create.

To be honest with you guys, this is so insane. But this is not like uncommon in the industry. Right. There's a lot of these larger agencies and larger IMO's out here that will do this exact same thing, right? Forging, forging customer signatures. And.

If this is like true that AIL is doing this, my guess is that, you know, granted there's no, there's no money to be made shorting these companies because they're not like. Well, I guess in a way they would be publicly traded companies, but most of them are not publicly traded companies. But I have a feeling if this, you know, is like a big scandal that gets even bigger, will probably have a lot of research and a lot of like digging from, from the government into a lot of these IMOs. And there's going to be a lot more of this like forgery stuff coming out. Because I mean, just from like hearing what people do in this industry, there is a lot of sketchy shit going on.

Policies for dead people create fake policies by signing up customers without their consent.

Yeah, I mean, I've heard crazy stuff. I've heard situations where people will literally like sign a policy for somebody without the person even being on the line. And that's happened to like clients of ours. That's happened to, you know, I've heard other agents talk about people doing it. Like this stuff is, is, is definitely happening. I don't know if it's happening at Globe Life. This is what the, you know, allegations say. Obviously, you know, that's up to the legal authorities to sort that out. But I know for a fact that this does happen in the industry and.

Commit actuarial fraud by lying about whether policyholders smoke.

That happens too.

Video celebrating a top grossing agent of 2022.

What a success story, right? Is coming all the way behind all.

Year long and on the last day.

Crushing and setting the all time record. They had a guy on Christmas week write $270,000 worth of business. Now listen, I've been in insurance sales for 37 years. To write a policy with us takes a good hour. I don't know how you can write $300,000 wor in three days. I mean, there's just not enough hours in the day.

Ail agents describe them.

Yeah, that's insane. So let's break that down a little bit. They basically said that somebody wrote 270k in one week. In one week. Right.

I know people that have been in the industry for decades and they'll have, you know, if their sales team does that in one, in one week, their whole sales team, and we're talking like 50, 60 plus people, like that's a good week. 270k is like a good week for a whole team, One person to write that, you know, maybe he was doing it legit. But my, you know, usually whenever, whenever you smell some shit, there's some shit there, right? And I'm smelling shit. So that sounds sketchy to me for sure. 270k in one week. That sounds like, that sounds like a lot of, a lot of. A lot of interesting business to say the least.

Themselves as the new wolves of Wall Street.

As far back as I can remember, I always want.

All right, so I think right here they're just going to show us like some different, you know, reels or things that they're using to recruit or things that the people are posting on social media. Let's kind of see what I think about this.

Wanted to be a gangster. To me, being a gangster was better.

Than being President of the United States.

Right. So private jet, whatever. What kind of car is this? I can't see. Looks like an Acura maybe. I can't see the logo, but let's see.

An Infinity. I mean like infinities are nice, but that's nothing crazy. What's up, dude?

People ask me all the time, nick, how are you able to do so many trips and travel so much at 25 years old? The answer is I sell life insurance with Globe Life, American Income Life Division. I dropped out of college at 19 years old and I've been able to generate millions of dollars in revenue since then in July 2021. So I mean, like, I don't know what Fuzzy Panda is trying to, you know, say by this, but just because people are making like, let's say, let's say they're not doing anything sketchy and those people are just making money legitimately, like I don't understand what's wrong with them posting it on social media, right? I mean, typically what you'll see a lot of times with like the bigger MLMs or IMOs or things like that is whenever they're like trying to recruit you with all of the flash. A lot of times that means that it's not the best opportunity. But I mean, at the end of the day, I don't, I don't really see anything wrong with flexing the lifestyle because ultimately that's what sells. And you know, if he's made a few million dollars and as long as he's done it without being sketchy, which that's obviously what this whole accusation is, I don't see anything wrong with him talking about his lifestyle. Nothing has been said who's gone out and written over $2 million of production in two years. There's multiple people in the company in their very first year, easily clearing six.

Figures and I'm making a thousand dollar sales every single day.

I was able to write 10k my first month. I mean that's like, that's nothing crazy. Thousand dollar sales every day. I mean, if you're a good agent, you're probably doing that and 10k, like writing 10k in your first month, like that's, to be honest, that's not really anything to write home about. How old are you?

22.

22 and made over 300,000. College education? No college education.

Evan, how old are you?

20. And what kind of car do you drive?

AMG GT Justin, how old are you.

And what kind of car do you drive? 24. And I drive a 2022 CA Corvette. How old are you and what kind of car do you drive? I am 21 years old and I have a McLaren GT.

Investors mistakenly think this problem is only limited to one sales team led by Simon Arias, a sales team that Former agents say is known for insurance fraud, rampant drug use, sexual harassment and bad motivational speeches.

If you see bad motivational speeches. Yeah, I mean the whole car thing, like granted they're definitely flexing the lifestyle and that's typical of like a you know, MLM type business. But.

They'Re probably talking about the approved business. Right. When the guy's saying, you know, I made 300k, like maybe that's what he wrote. But that doesn't mean that's what he made. Maybe that's what he made. It's possible and you know, it's nothing like for people to have those cars. Like that doesn't necessarily mean that they're committing fraud. Now I'm not saying that they're not committing fraud, but they're playing these like lifestyle videos to kind of say like oh my God, you know, these people are sketchy which like other than them forging the documents and doing that. Yeah, I mean they're, they're definitely using recruiting tactics. And from what I've heard, maybe the air opportunity is not as good as, you know, some other options out there. But I'm not really seeing anything that's like major red flags so far either knows besides the forgery and everything else that they went over. As long as that's true, that's obviously a major red flag. But like the, you know, them talking about their lifestyle and their success, that's not like a huge issue is ways to you getting closer to winning and the wins as you truly winning, then you can't lose.

But we have discovered fraud at numerous other top performing sales teams across the United States. These teams account for more than 60% of their new business. We are just beginning to examine if these issues are also pervasive at Globe Life's smaller subsidiaries, Liberty national or United American. How has this happened at a storied 70 year old company? Former executives and agents told us that the Fraud began in 2017 after Steve Greer took over as CEO and then David Zofin became president.

From 2017 on, it became a lot more rampant and a lot bigger numbers. You never had that before.

Zofan and GlobeLife executives are not only aware of widespread insurance fraud, but legal complaints state that zofan and a GlobeLife senior vice president engaged.

So let's see. Globe Life execs got a kickback for every student who purchased pre licensing, testing and training from Excel. Even if the recruit never became a licensed agent or a prescriptive agent, never produced a single insurance sale. The executives and exclusive agencies made money because they received kickbacks and bribes from the mandating pre licensing required for the position.

I mean, to my knowledge, this is not illegal. That's just affiliate marketing. Right? Like again, I'm not saying that the whole churning agents thing is good. Obviously I, I like, I don't run my own business that way. But from what I'm seeing here, like for them to make money from recommending a certain testing provider for pre licensing, like that's kind of a stretch to say that this is like something bad.

In their own illegal kickback and bribery scheme, the executives lied to regulators concealing their ownership of a course to prep for licensing exams. They used to make money by upcharging their own recruits. It's.

Yeah, I mean, that would be, that would be sketchy, right? Like if they are lying about having ownership in it, that's obviously sketchy. I don't know that they're doing that, but you know, if they are, that would be sketch.

Estimated executives pocketed more than $65 million. Meanwhile, the sales teams make no effort to hide the fact that they're running an mlm.

Bordering on an illegal pyramid scheme.

Did you sell it all last week?

Oh, no, I didn't sell.

No. Sales made still made five grand.

Reviews reveal recruiting is compensated better than actually selling life insurance. Many call this.

Yeah, that's, that's nothing. Exclusive to ail.

If we're being honest, sales organization's a pyramid scheme. We went undercover and interviewed to join the sales teams. In multiple interviews, recruiters explained to us how we would have an upline and that we could make more money recruiting people than selling insurance. Even worse, American Income Life Management enabled or otherwise encouraged a culture of misogyny. Sexual.

Okay, let's see what this says. Openly and frequently exchanged extramarital affairs and sexual relationships, oftentimes with female subordinates, resulting in pregnancies which made arias and male.

Leaders financed or otherwise caused to be aborted. Jesus, that is intense. So if I'm reading this correct, they basically were having relationship with their female subordinates and then getting them pregnant and then paying to have the babies aborted. Yeah, that's intense. If this, if this is true. Yeah, these guys are starting to sound sketchy to be like what I was saying earlier, the whole like lifestyle thing. I mean that's just a really common thing with recruiting. So I don't necessarily see that as a negative. But like this is pretty. This is pretty intense as well as the, you know, obviously the fraud, if that's what's actually going on in their agency. I can't confirm or deny that because I don't know what's going on. You know, when proof comes out from, you know, regulatory bodies and stuff, then maybe I'll comment on that. But, you know, we have to be careful about what we say there. But yeah, I mean, obviously forging documents and this kind of stuff is pretty sketch.

Violence and racism at some of their top sales teams. According to a slate of recent lawsuits and former employee interviews, Richard Zucato, a managing agent in my sales team, choked me and forced me to perform oral sex on him. He sexually assaulted me on multiple occasions. I requested a transfer and AIL president David Zofin stepped in and denied my request at another American Income Life sales team. Super.

That's intense.

Oh, my God. All right, yeah. This is getting worse and worse.

Advisors demanded oral sex for promotions and masturbated in front of female subordinates.

Warren, what is going on? Jesus Christ. This is getting worse and worse.

Buffett owned Globe LifeStock for 20 years. He dumped it all last year. And online customer reviews of American Income Life often give it a one star rating. Complain.

Yeah, I mean, what I'll say is this guy sounds like a pretty terrible person and his agency sounds like a pretty, pretty terrible place to work, if we're being honest.

But you know, whether that's indicative of all of Globe Life, I'm not sure. Or whether that's indicative of all of ail. I guess we'll kind of come to see what happens. But let's finish out this video.

Meaning that their sales reps signed them up for life insurance they didn't want, asked for their checking account to verify their eligibility status, and then started withdrawing cash. Or that it's nearly impossible to cancel their policies. And that sales reps repeatedly, repeatedly violate federal anti harassment laws with non stop calls, texts and home visits. And the Department of Justice is already investigating. We have discovered widespread allegations of fraud. We believe the sheer volume of bad policies will impact GlobeLife's bottom line and executives could face federal and state prosecution. Will Globe Life clean house and save itself or will they allow the fraud to continue? Either way, we are short Globe Life.

All right, so that's Fuzzy Panda. Yeah, I mean, let's kind of open this up here. So my thoughts ail in general, obviously, you know, they would kind of lean more towards an mlm. A lot of the stuff that was talked about in that video, I've seen it a lot of other IMOs, a lot of other, you know, MLM, bigger companies like that. And so I wouldn't be surprised if more stuff comes out and more stuff comes out not only about Globe Life but about some other other places as well. No names to be named but yeah I mean there's a lot of problems with the industry that is for sure. Overall my thoughts on AIL.

Do your own research. I've heard some some things similar to what they're describing and you know if you're looking for like the MLM recruiting type of that's definitely what you're gonna get but if you're looking more for production then you might want to look somewhere else. So overall is AIL a fraud? I guess we will just have to see and you know kind of see what happens with the reports that come out but it doesn't look good I will say that so hopefully you guys got some value from this video. Let me know your thoughts in the comments down below and I'll see you guys in the next one. Take care.