Penn Mutual Faces Lawsuit Over Alleged Tax Avoidance Scam

A lawsuit has been filed by 29 plaintiffs against Penn Mutual Life Insurance Co. and several co-defendants, alleging a tax-avoidance scam involving whole life insurance policies. The complaint, submitted to the U.S. District Court for the Central District of California, accuses the defendants of fraud, negligence, and violation of the RICO Act, seeking $23.5 million in damages. The plaintiffs claim that they were misled into the scam, believing in fraudulent tax advantages associated with the policies. The complaint names former Penn Mutual agent Randall Scott Boll, who has a criminal record for financial crimes, as a key figure in promoting these policies as part of a “High-Premium Insurance Enterprise.” Insurers often reap significant commissions from these sales, while plaintiffs report losing substantial funds without receiving the promised benefits.