LAKEPORT — The preliminary hearing for a local insurance agent charged with theft from an elder began Tuesday at the Lake County Courthouse.
Glenn A. Neasham faces one felony charge of theft from an elder or dependant adult exceeding $950, as well as two special allegations, one of which stipulates that the theft exceeded $100,000.
The results of a California Department of Insurance (CDI) investigation allege that Neasham, who operates Neasham Financial, Insurance and Retirement Planning in Lakeport, acted illegally when he sold a $175,000 annuity to a local woman, then 83 years old, in February 2008.
The Lake County District Attorney”s Office arrested Neasham in December 2010, and Neasham pleaded not guilty to the felony charge, and denied the special allegations, in February.
Judge Richard C. Martin presided over Tuesday”s preliminary hearing. Deputy district attorney Rachel Abelson represented the DA”s Office and attorney Mitchell Hauptman represented Neasham.
Before the court heard testimony, eight senior citizen clients and supporters of Neasham, who could potentially be called as character witnesses during a jury trial, were asked to leave the courtroom because witnesses have been prohibited from hearing prior testimony.
CDI investigator Kristin Schriber was the first witness called late Tuesday morning.
Schriber said she spoke with the alleged victim, Fran Schuber, several times about the annuity transaction. Schuber was “hesitant” to answer questions, looking to her longtime boyfriend for “reassurance” and seemed “confused” during an in-person interview in December 2008, Schriber said.
The CDI said in a December statement that the alleged victim “lacked the mental capacity” to enter into the annuity contract.
Schuber withdrew funds from a certificate of deposit (CD) to purchase the annuity, according to Schriber, who later testified that she did not think the type of annuity Schuber purchased was a suitable investment for an 83-year-old. Schuber could be as old as 98 before her annuity would realize its full potential, Schriber said.
Under cross-examination, Schriber said she could not confirm if there was an age limit imposed by regulatory agencies on the type of annuity Schuber purchased. Hauptman argued that the age limit could have been 85 years old for that type of annuity in 2008.
Neasham told the Record-Bee on Dec. 16 that “I did my job 100-percent ethically for my client, and the annuity was a great improvement from her previous financial situation, as well as it was a suitable investment.”
Schriber”s testimony was interrupted to allow Hauptman to call one witness, Schuber”s 86-year-old boyfriend Louis Jochim.
Jochim said he has invested in annuities through Neasham for more than 10 years and that he and Schuber are both happy with the results of their investments with Neasham.
Jochim also said that he did not recall any doctors telling him that Schuber had been diagnosed with Alzheimer”s disease or any other memory-loss condition. Schuber has shown increased signs of memory problems and forgetfulness in the past year, he said.
Schriber was recalled at 3:50 p.m. and completed her testimony at 4:10 p.m.
The prosecution has more evidence to present, but an upcoming jury trial affected Martin”s availability today.
Neasham waived his right to a single-session preliminary hearing and Martin scheduled the hearing to reconvene Friday morning.
Contact Jeremy Walsh at jwalsh@record-bee.com or call him at 263-5636, ext. 37.
