Michigan Financial Advisor Charged with Four Felony Counts of Insurance Fraud

Michigan financial advisor Todd Bernstein, 67, has been charged with four counts of insurance fraud, each a four-year felony. Bernstein allegedly submitted misleading information on annuity suitability applications to conceal that new annuities were purchased with proceeds from early surrendered annuities. The Michigan Department of Insurance and Financial Services assisted in the investigation. Bernstein will next appear in court on August 12.

Lansing, MI – A 67-year-old financial advisor from Birmingham, Michigan, has been charged with four counts of insurance fraud. Todd Bernstein, who is a licensed financial advisor, was arraigned before Magistrate Julie Nelson-Klein in the 48th District Court in Bloomfield Hills. The charges allege that Bernstein submitted misleading information on annuity suitability applications on behalf of his clients, who were over the age of 65, to conceal that new annuities were being purchased with proceeds from early surrendered annuities [1].

The Michigan Department of Insurance and Financial Services (DIFS) assisted in the investigation. Bernstein's actions are alleged to have undermined the financial security of his clients, who are navigating the complexities of old age. The Michigan Attorney General's Office, led by Dana Nessel, emphasizes the importance of financial professionals acting truthfully and in the best interests of their clients [2].

"Consumers must be able to trust financial professionals to act truthfully and in their best interests," said Attorney General Nessel. "My department remains committed to protecting Michigan residents from illegal and predatory business practices." DIFS Director Anita Fox echoed this sentiment, highlighting the role of financial professionals in safeguarding consumers' financial futures and encouraging Michiganders to report suspected fraud [3].

Bernstein's next court appearance is scheduled for August 12. The charges carry a maximum penalty of four years in prison for each count. It is important to note that a criminal charge is merely an allegation, and the defendant is presumed innocent until proven guilty.

References:
[1] https://www.michigan.gov/ag/news/press-releases/2025/07/31/birmingham-man-charged-with-insurance-fraud
[2] https://www.cbsnews.com/detroit/news/michigan-financial-advisor-charged-with-fraud/
[3] https://hoodline.com/2025/08/birmingham-financial-advisor-charged-with-insurance-fraud-in-michigan-attorney-general-nessel-asserts-consumer-trust-at-stake/