Man takes revoked insurance agent to court
A Waterloo man is taking a former insurance agent who is under investigation to court over a failed business proposition.
Jeffrey William Holmes, 41, said in court records he gave Jack Straw a check for $25,000 to buy into Straw’s Financial Benefit Services in 2004.
But the business never got off the ground, and Straw, formerly of Dunkerton, never returned Holmes’ money.
Now Holmes has filed a lawsuit against Straw and David Platte, a Waverly attorney who allegedly represented Straw’s company.
Holmes is represented by attorney Samuel Anderson.
Platte couldn’t be reached for comment.
According to the suit, Holmes began negotiating a plan to buy into Straw’s company, Financial Benefits Services in September 2004.
Under the proposal, Holmes would pay $25,000 and Straw would make available to him his book of business, which included client lists and other records.
Straw provided Holmes a copy of the company’s 2003 tax returns so Holmes would use the information to receive a $25,000 loan from Wells Fargo Bank, the lawsuit states.
Straw received the money and told Holmes it would be held in trust until the final agreement was signed.
Platte drafted an operating agreement for the company, and the agreement was finalized in September 2006 after a number of delays.
But Holmes said he was never provided a copy of the agreement or any of the business records, even after he asked for one, the suit states. He said Straw said the business had been around since 2000, but Holmes later learned the company had never been incorporated with the Iowa Secretary of State’s Office.
The suit claims Straw kept Holmes’ money for his own use.
Holmes is alleging breach of contract and conversion on the part of Straw and fraudulent representation on the part of both Straw and Platte.
In September, the Iowa Insurance Division revoked Straw’s insurance license for life after he allegedly altered and misrepresented policies, misled clients, forged signatures and made unauthorized withdrawals from clients’ annuity policies.
State regulators allege Straw issued reimbursement checks that bounced, threatened clients and sold securities without a license.
Contact Jeff Reinitz at (319) 291-1578
By JEFF REINITZ
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