Lottery Winner Sues Advisors for Poor Policies

By Hal M. Bundrick

NEW YORK (MainStreet) ¿ What do you buy when you win the lottery? An exotic new car? Likely. A sprawling luxury home? Sure.

Life insurance? Not so much.

A young, unmarried grocery store worker, with no children, won half of a $336 million Mega Millions jackpot and did just that: bought a $100 million life insurance policy. Now he is suing the financial advisors who sold him the policy, along with other investments that encouraged him to "assume tens of millions of dollars in debt," according to the Courthouse News Service.

Kevyn Ogawa won the lottery back in 2009, taking a lump-sum cash payout and netting $70 million, after taxes.

Shortly thereafter he began investing with two financial advisors, who were also attorneys and insurance agents. They convinced Ogawa to buy four policies from four companies, telling him he could "earn $50 million by the time he was 50 years old," the complaint states. Ogawa says the agents made $1million in commissions from the sales, exploiting the fact that he "knew nothing about life insurance."

The complaint adds: "Kevyn, a young unmarried man with no children, no siblings and only one living parent, had no need for so much life insurance. Kevyn stood no chance to benefit from the insurance financially since he was not named as a beneficiary of the trust that owned the policies."

If you liked this article you might like

10 Best Gift Ideas for Executives

10 Best Laptop Bags for Women

The Most Wanted Toys for 2016 Holiday Season

Holiday Gift Guide: From Sweaters to Winter Boots

Holiday Buying Guide: Best New Tech Gifts