LAKEPORT — Local insurance agent Glenn A. Neasham will stand trial for felony theft after a judge ruled on Friday that the prosecution “barely” established the “strong suspicion” standard during a three-day preliminary hearing.
Judge Richard C. Martin said that based on the evidence presented during the preliminary hearing, the prosecution”s case “has only passed that (strong suspicion) test by the thinnest of lines.”
Martin presided over the preliminary hearing, which concluded Friday at the Lake County Courthouse. Attorney Mitchell Hauptman represented Neasham, and deputy district attorney Rachel Abelson represented the Lake County District Attorney”s Office.
Neasham, 51, 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 prosecution alleged that Neasham”s client, Fran Schuber, lacked the mental capacity to enter into the annuity contract because of a documented history of Alzheimer”s disease dating back to 2003.
Hauptman argued Neasham was not aware of an Alzheimer”s diagnosis, nor that of any other memory-loss condition, and believed the annuity was a good investment for Schuber.
The DA”s Office arrested Neasham in December 2010, and Neasham pleaded not guilty to the felony charge, and denied the special allegations, in February.
“As the judge said, the people have a weak case against me to say the least. Once our side of the evidence comes forward everything will work itself out. There”s a lot of information the judge didn”t hear at the preliminary hearing?that should really benefit us,” Neasham said in a statement Friday afternoon.
In making his ruling, Martin pointed out that the standard for moving a case forward from a preliminary hearing to trial is a probable cause standard requiring the judge to determine the existence of a strong suspicion that the crime was committed.
That standard is less stringent than the reasonable doubt standard that a jury would be asked to consider, Martin said.
The evidence suggests that Schuber made a $175,000 withdrawal from a certificate of deposit (CD) and wrote a check for the entire amount to purchase the annuity from Allianz Life Insurance, a deal brokered by Neasham.
Martin called the case “not your obvious, run of the mill” theft charge. “He obviously did not pocket that money himself,” Martin said of Neasham, “but his actions did deprive his client, Ms. Schuber, from having access to that money for several years.”
Martin ruled enough evidence had been presented to compel Neasham to stand trial for the felony theft count and answer to both special allegations. Neasham will be arraigned on April 18 in Department 3.
Contact Jeremy Walsh at jwalsh@record-bee.com or call him at 263-5636, ext. 37.
