State of Minnesota District Court County of Benton 7th...

State of Minnesota District CourtCounty of Benton 7th Judicial District

18-463Prosecutor File No.05-CR-18-1170Court File No.

State of Minnesota, COMPLAINT

Plaintiff, Summons

vs.

LISA MARIE SCHURHAMMER DOB: 03/06/1959

1700 2nd Ave. N.Sauk Rapids, MN 56379

Defendant.

The Complainant submits this complaint to the Court and states that there is probable cause to believeDefendant committed the following offense(s):

COUNT I

Charge: INSURANCE FRAUDMinnesota Statute: 609.611.1(a)(1), with reference to: 609.52.3(2)Maximum Sentence: 10 years and/or $20,000Offense Level: Felony

Offense Date (on or about): 12/01/2015 to 12/31/2015

Control #(ICR#): 16001612

Charge Description: The defendant, LISA MARIE SCHURHAMMER, with intent to defraud, for thepurpose of depriving another of property or for pecuniary gain, committed, or permitted its employees oragents to commit, insurance fraud by presenting, causing to be presented, or preparing with knowledge orreason to believe that it would be presented, on behalf of an insured, claimant, or applicant to an ensurer,insurance professional, or premium finance company in connection with an insurance transaction orpremium, finance transaction, information which contained a false representation as to a material fact, orwhich concealed a material fact concerning an application for, rating of, or renewal of, an insurancepolicy, the loss because of this exceeding $5000.

COUNT II

Charge: FRAUDMinnesota Statute: 80A.68(1), with reference to: 80A.75(a)Maximum Sentence: Five years and/or $10,000Offense Level: Felony



Charge Description: The defendant, LISA MARIE SCHURHAMMER, employed a device, scheme, orartifice to defraud another in connection with the offer, sale, or purchase of a security, either directly or

1

indirectly.

COUNT III




Charge Description: The defendant, LISA MARIE SCHURHAMMER, made an untrue statement of amaterial fact, or omit to state a material fact necessary in order to make a statement made, in light of thecircumstances under which it is made, not misleading, to another in connection with the offer, sale, orpurchase of a security, either directly or indirectly.

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STATEMENT OF PROBABLE CAUSE

Complainant is a member of the Minnesota Department of Commerce. He/she bases this complaint uponinformation contained in the files of the Minnesota Department of Commerce.

The defendant herein, LISA MARIE SCHURHAMMER, represented herself as being in the business offinancial planning calling her business Retirement America, LLC, located at 1700 2nd Ave. N., SaukRapids, Benton County, Minnesota. At all times herein, the defendant conducted business with all allegedvictims through her business at the aforementioned address. The defendant has held an active ResidentInsurance Producer license for life insurance since April, 2014, through American General Life InsuranceCompany (AIG). The defendant’s Variable Life and Variable Annuity license has been inactive since July31, 2016. Since July 1, 2014, the defendant has not been registered as a bullion coin dealer and dealerrepresentative to solicit, market, buy, sell, or deliver bullion coins or investments in bullion coins toconsumers.

The defendant made precious metals purchases in May, 2014, and in May, 2016, on behalf of clients,some of which she represented in separate insurance investments. The defendant would deposit clientfunds, issued strictly for gold purchases, into her own personal bank account. In some cases, only a portionof the client’s funds were sent to the precious metals company and in other cases, nothing at all.Furthermore, the clients that received precious metals were not provided proper invoices by the defendantreflective of the actual purchase from the precious metals companies. In two known related cases, thedefendant later advised clients that the precious metals she delivered needed to be checked forauthenticity before taking it, selling it, and telling the client it was counterfeit while using themoney/proceeds received on the sale for defendant’s own personal use, or reimbursement to other clientsfor debts due.

In some cases, defendant encouraged some of her clients to surrender policies from annuities with oneinsurance company and place the funds into their own personal bank account before using that samemoney to purchase a product from another insurance company. Defendant failed to disclose the policies’replacement statuses and, therefore, prevented the client from receiving a fair product suitability review.Those reviews may have resulted in the new insurance company denying the purchase and, therefore,would have prevented clients from suffering large surrender penalties with their old company. Additionally,some of these clients withdrew money from their insurance policies to fund these precious metalspurchases which were ultimately retained without authorization by the defendant, and these individuals alsosuffered premature surrender penalties due to the withdrawals.

Defendant misrepresented the terms of insurance contracts when she did not disclose them asreplacements despite Minnesota Statute 61A.53 which defines “replacement,” despite her training,education and history with other represented clients in whom she properly navigated the legal transfer oftheir contracts. Because of this, the defendant’s practice of misrepresenting client contracts assured her ofa commission from the insurance company rather than risk an unsuitable review and declination whichwould have prevented her from receiving a commission. The Minnesota Department of Commerce, FraudBureau, began an investigation concerning the defendant in April, 2017.

VICTIM - J.S.

In December, 2015, J.S., under the advisement of the defendant, transferred two annuities from RaymondJones to Allianz. At that time, J.S. was 71 years old. J.S. advised the defendant that she wanted one fiveyear annuity, and one seven year annuity, because of her age. The defendant charged J.S. $11,231.82 asher fee for the transfers. J.S. never heard from the defendant again.

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J.S. contacted Allianz and found that the defendant had actually transferred J.S.'s money into ten yearannuities. Allianz also paid the defendant $36,503.42 commission for these transfers. The defendant,based upon the commission, should not have charged J.S. anything as a fee. J.S.'s loss was $11,231.82based upon the defendant's actions and misrepresentations.

The above facts constitute complainant’s basis for believing that during December, 2015, at the offices ofRetirement America, LLC, 1700 2nd Ave. N., Sauk Rapids, Benton County, Minnesota, the above-nameddefendant committed the offenses described herein.

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SIGNATURES AND APPROVALS

Complainant requests that Defendant, subject to bail or conditions of release, be:(1) arrested or that other lawful steps be taken to obtain Defendant's appearance in court; or(2) detained, if already in custody, pending further proceedings; and that said Defendant otherwisebe dealt with according to law.

Complainant declares under penalty of perjury that everything stated in this document is true andcorrect. Minn. Stat. § 358.116; Minn. R. Crim. P. 2.01, subds. 1, 2.

Complainant Tracy Kaczrowski Electronically Signed:06/11/2018 09:21 AMRamsey County, MN

Special Agent85 7th Place EastSuite 500St. Paul, MN 55101Badge: 105

Being authorized to prosecute the offenses charged, I approve this complaint.

Prosecuting Attorney Electronically Signed:06/09/2018 03:05 PM

Robert B AndersonAsst County Attorney615 Hwy 23PO Box 189Foley, MN 56329(320) 968-5175

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FINDING OF PROBABLE CAUSEFrom the above sworn facts, and any supporting affidavits or supplemental sworn testimony, I, the Issuing Officer, have

determined that probable cause exists to support, subject to bail or conditions of release where applicable, Defendant’s arrest

or other lawful steps be taken to obtain Defendant’s appearance in court, or Defendant’s detention, if already in custody,

pending further proceedings. Defendant is therefore charged with the above-stated offense(s).

SUMMONSXTHEREFORE YOU, THE DEFENDANT, ARE SUMMONED to appear on July 3, 2018 at 9:30 AM before theabove-named court at 615 Hwy 23, Foley, MN 56329-0189 to answer this complaint.

IF YOU FAIL TO APPEAR in response to this SUMMONS, a WARRANT FOR YOUR ARREST shall be issued.

WARRANT

To the Sheriff of the above-named county; or other person authorized to execute this warrant: I order, in the name of the State

of Minnesota, that the Defendant be apprehended and arrested without delay and brought promptly before the court (if in

session), and if not, before a Judge or Judicial Officer of such court without unnecessary delay, and in any event not later than

36 hours after the arrest or as soon as such Judge or Judicial Officer is available to be dealt with according to law.

Execute in MN Only Execute Nationwide Execute in Border States

ORDER OF DETENTION

Since the Defendant is already in custody, I order, subject to bail or conditions of release, that the Defendant continue to bedetained pending further proceedings.

Bail: $Conditions of Release:

This complaint, duly subscribed and sworn to or signed under penalty of perjury, is issued by the undersigned Judicial Officeras of the following date: June 11, 2018.

Judicial Officer Robert Raupp

Electronically Signed: 06/11/2018 09:33 AM

Sworn testimony has been given before the Judicial Officer by the following witnesses:

COUNTY OF BENTONSTATE OF MINNESOTA

State of MinnesotaPlaintiff

vs.

LISA MARIE SCHURHAMMERDefendant

LAW ENFORCEMENT OFFICER RETURN OF SERVICEI hereby Certify and Return that I have served a copy of this

Summons upon the Defendant herein named.

Signature of Authorized Service Agent:

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DEFENDANT FACT SHEET

Name: LISA MARIE SCHURHAMMER

DOB: 03/06/1959

Address: 1700 2nd Ave. N.Sauk Rapids, MN 56379

Alias Names/DOB:

SID:

Height:

Weight:

Eye Color:

Hair Color:

Gender: FEMALE

Race:

Fingerprints Required per Statute: Yes

Fingerprint match to Criminal History Record: No

Driver's License #:

Alcohol Concentration:

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STATUTE AND OFFENSE GRID

CntNbr

StatuteType

OffenseDate(s)

Statute Nbrs and Descriptions OffenseLevel

MOC GOC ControllingAgencies

CaseNumbers

1 Charge 12/1/2015 609.611.1(a)(1)Insurance Fraud-Present FalseRepresentation/Conceals Facts-PolicyApplication

Felony U199G N MN062095Y 16001612

Penalty 12/1/2015 609.52.3(2)Theft-Value over $5,000 or TradeSecret, Explosive, ControlledSubstance I or II

Felony U199G N MN062095Y 16001612

2 Charge 12/1/2015 80A.68(1)Securities - Sale or Purchase - EmployDevice, Scheme or Artifice to Defraud

Felony U1990 N MN062095Y 16001612

Penalty 12/1/2015 80A.75(a)Securities - Violate Chapter 80A, RuleAdopted or Order Issued - CriminalPenalty

Felony U1990 N MN062095Y 16001612

3 Charge 12/1/2015 80A.68(2)Securities - Sale or Purchase - MakeUntrue or Misleading Statements

Felony U1990 N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612

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Plaintiff, Summons

vs.



Defendant.


COUNT I

Charge: THEFT BY SWINDLEMinnesota Statute: 609.52.2(a)(4), with reference to: 609.52.3(2)Maximum Sentence: 10 years and/or $20,000Offense Level: Felony



Charge Description: The defendant, LISA MARIE SCHURHAMMER, by swindling, whether by artifice,trick, device, or any other means, obtained property or services from another person, the property orservices having a value in excess of $5000.

COUNT II

Charge: THEFTMinnesota Statute: 609.52.2(a)(1), with reference to: 609.52.3(2)Maximum Sentence: 10 years and/or $20,000Offense Level: Felony



Charge Description: The defendant, LISA MARIE SCHURHAMMER, intentionally and without claim ofright took, used, transferred, concealed or retained possession of movable property of another without theother's consent and with intent to deprive the owner permanently of possession of the property, theproperty having a value in excess of $5000.

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VICTIMS - K.C. and G.C.

In October, 2015, K.C. and G.C. gave the defendant a check for $28,072 to purchase precious metals,specifically, gold. At that time, the defendant was not legally registered to purchase gold for anyone. Thevictims indicated that sometime later, they received 20 gold bars from the defendant which sherepresented as being valued at $28,072. The victims stated that in the spring of 2017, the defendant

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contacted them and advised them that the gold's purity needed to be checked as the defendant believedthey may be counterfeit. The victims turned the 20 gold bars over to the defendant. The defendant latertold the victims that five bars were authentic, but 15 bars were counterfeit.

The defendant told the victims that she would hold onto the five good gold bars until the 15 counterfeit barscould be replaced. The victims indicated that they have not received their gold bars back from thedefendant, nor have they been financially reimbursed.

Records obtained from the defendant and Provident Precious Metals show that the defendant onlypurchased $18,262.25 worth of gold with the victims' $28,072. The defendant used the remaining$9,809.75 for her own personal use.

The above facts constitute complainant’s basis for believing that between October, 2015, and the summerof 2017, at the offices of Retirement America, LLC, 1700 2nd Ave. N., Sauk Rapids, Benton County,Minnesota, the above-named defendant committed the offense described herein.

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4







WARRANT






ORDER OF DETENTION





Electronically Signed: 06/13/2018 12:07 PM




vs.





5



DOB: 03/06/1959


Alias Names/DOB:

SID:

Height:

Weight:

Eye Color:

Hair Color:

Gender: FEMALE

Race:



Driver's License #:


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CntNbr

StatuteType

OffenseDate(s)



CaseNumbers

1 Charge 10/1/2015 609.52.2(a)(4)Theft-By Swindle

Felony U106K N MN062095Y 16001612


Felony U106K N MN062095Y 16001612

2 Charge 10/1/2015 609.52.2(a)(1)Theft-Take/Use/Transfer MovableProp-No Consent

Felony TS011 N MN062095Y 16001612


Felony TS011 N MN062095Y 16001612

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Plaintiff, Summons

vs.



Defendant.


COUNT I




Charge Description: The defendant, LISA MARIE SCHURHAMMER, by swindling, whether by artifice,trick, device, or any other means, obtained property or services from another person, the property orservices having a value in excess of $35,000.

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VICTIM - M.K.

In May, 2014, M.K. purchased gold through the defendant. M.K. gave the defendant $125,000. Recordsshow that the defendant only purchased $105,867.91 worth of gold, which was turned over to M.K. Thedefendant spent the balance of $19,132.09 on personal and gambling expenses. The defendant neverprovided any official paperwork to M.K. when delivering the unknown amount of gold to her.

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In the summer of 2016, the defendant told M.K. that she suspected the gold was counterfeit. The defendantrequested that the gold be turned over to her so it could be checked for authenticity. M.K. did turn over all ofthe gold she had received in 2014 to the defendant. Subsequent to this, the defendant told M.K. that someof the gold was, in fact, counterfeit. M.K. did not receive any of the gold back from the defendant.Investigation revealed that pawn records show that the defendant sold M.K.’s gold on June 24 and 27,2016, for $79,175.52. Of this amount, the defendant only reimbursed to M.K. $25,166. The defendant liedto M.K. about the gold being counterfeit. As a result, M.K. experienced a loss of $99,834 due solely todefendant’s representations and actions.

The above facts constitute complainant’s basis for believing that during the summer of 2016, at the officesof Retirement America, LLC, 1700 2nd Ave. N., Sauk Rapids, Benton County, Minnesota, the above-named defendant committed the offense described herein.

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4







WARRANT






ORDER OF DETENTION





Electronically Signed: 06/13/2018 12:06 PM




vs.





5



DOB: 03/06/1959


Alias Names/DOB:

SID:

Height:

Weight:

Eye Color:

Hair Color:

Gender: FEMALE

Race:



Driver's License #:


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CntNbr

StatuteType

OffenseDate(s)



CaseNumbers


Felony U106K N MN062095Y 16001612

Penalty 5/1/2016 609.52.3(1)Theft-Firearm or Property Value Over$35,000

Felony U106K N MN062095Y 16001612

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Plaintiff, Summons

vs.



Defendant.


COUNT I





COUNT II




Charge Description: The defendant, LISA MARIE SCHURHAMMER, employed a device, scheme, orartifice to defraud another in connection with the offer, sale, or purchase of a security, either directly or

1

indirectly.

COUNT III





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VICTIMS - M. L. L-T and D.T.

On February 24, 2017, at the recommendation of the defendant, the victims surrendered their less thanthree year old annunities with Allianz. The money from Allianz was sent directly to the victims. On March 2,2017, the victims purchased annuity contracts with AIG through the defendant. The victims suffered anearly surrender penalty totaling $25,362.20 because these funds were not a "renewal." The defendant had

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listed on the paperwork submitted to AIG that this was a new annuity contract. The defendant told thevictims they would make up the $25,362.20 fee/penalty within six months.

Because the defendant did not advise AIG that these were replacement and not new annuities, thedefendant received a commission from AIG of $24,135.52, which she would not have received had shecorrectly notified AIG that this was, in fact, a replacement annuities. The victims lost $25,362.20 becausethe defendant did not disclose to AIG that this was a replacement annuity.

The above facts constitute complainant’s basis for believing that during February and March, 2017, at theoffices of Retirement America, LLC, 1700 2nd Ave. N., Sauk Rapids, Benton County, Minnesota, theabove-named defendant committed the offenses described herein.

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5







WARRANT






ORDER OF DETENTION









vs.





6



DOB: 03/06/1959


Alias Names/DOB:

SID:

Height:

Weight:

Eye Color:

Hair Color:

Gender: FEMALE

Race:



Driver's License #:


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CntNbr

StatuteType

OffenseDate(s)



CaseNumbers


Felony U199G N MN062095Y 16001612


Felony U199G N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612

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Plaintiff, Summons

vs.



Defendant.


COUNT I





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VICTIM - E. H.

E.H. held an annunity through AXA Equitable Variable Annunity. In 2014, the defendant advised E.H. thatshe should surrender her AXA annuity and purchase another annuity. On April 7, 2014, E.H. did surrenderher AXA annuity at the defendant's request. Upon receiving the funds from AXA, E.H. deposited$250,400.58 into her personal bank account. Because of this early surrender, the penalty/fee incurred by

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E.H. was $17,903.38.

On April 16, 2014, E.H. issued a check to Allianz for a new annuity in the amount of $250,000 for areplacement annuity. The defendant represented to Allianz that the annuity was a new annuity, and not areplacement. Because of this, the defendant received a commission from Allianz in the amount of$17,500.

The above facts constitute complainant’s basis for believing that during April, 2014, at the offices ofRetirement America, LLC, 1700 2nd Ave. N., Sauk Rapids, Benton County, Minnesota, the above-nameddefendant committed the offenses described herein.

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4







WARRANT






ORDER OF DETENTION









vs.





5



DOB: 03/06/1959


Alias Names/DOB:

SID:

Height:

Weight:

Eye Color:

Hair Color:

Gender: FEMALE

Race:



Driver's License #:


6


CntNbr

StatuteType

OffenseDate(s)



CaseNumbers


Felony U199G N MN062095Y 16001612


Felony U199G N MN062095Y 16001612

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Plaintiff, Summons

vs.



Defendant.


COUNT I




Charge Description: The defendant, LISA MARIE SCHURHAMMER, by swindling, whether by artifice,trick, device, or any other means, obtained property or services from another person, the property orservices having a value in excess of $5000.

COUNT II




Charge Description: The defendant, LISA MARIE SCHURHAMMER, employed a device, scheme, orartifice to defraud another in connection with the offer, sale, or purchase of a security, either directly orindirectly.

COUNT III

Charge: FRAUDMinnesota Statute: 80A.68(2), with reference to: 80A.75(a)

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Maximum Sentence: Five years and/or $10,000Offense Level: Felony




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VICTIMS - K.C. and G.C.

The victims had been using the defendant and her business for financial services. The victims were payingthe defendant the sum of $1000 to $2000 as an annual fee. On August 20, 2015, the defendant told thevictims that if they paid the defendant $5000, it would be a "lifetime fee" and there would be no more yearlyfees. The victims did pay the defendant the $5000.

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In 2016, the defendant convinced the victims to surrender two separate annunties with Allianz, causing thevictims to suffer a $33,824.72 premature surrender fee/penalty. The defendant told the victims that ninedays after they received the money from Allianz, they were to take the proceeds from the two annuities andinvest in an AIG annunity. The victims followed this advice. The defendant did not disclose to AIG that thiswas a "replacement," and not a new annunity. Because of this, the defendant received a commission of$19,810 which she was not entitled to.

The victims have not heard from the defendant since April, 2017.

The above facts constitute complainant’s basis for believing that during 2016, at the offices of RetirementAmerica, LLC, 1700 2nd Ave. N., Sauk Rapids, Benton County, Minnesota, the above-named defendantcommitted the offenses described herein.

4









5







WARRANT






ORDER OF DETENTION









vs.





6



DOB: 03/06/1959


Alias Names/DOB:

SID:

Height:

Weight:

Eye Color:

Hair Color:

Gender: FEMALE

Race:



Driver's License #:


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CntNbr

StatuteType

OffenseDate(s)



CaseNumbers


Felony U106K N MN062095Y 16001612


Felony U106K N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612


Felony U1990 N MN062095Y 16001612

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Plaintiff, Summons

vs.



Defendant.


COUNT I

Charge: TEMPORARY THEFTMinnesota Statute: 609.52.2(a)(5)(i), with reference to: 609.52.3(2)Maximum Sentence: 10 years and/or $20,000Offense Level: Felony



Charge Description: The defendant, LISA MARIE SCHURHAMMER, intentionally and without claim ofright took, used, transferred, concealed or retained possession of movable property of another with intentto exercise temporary control only, and the control exercised manifested an indifference to the rights ofthe owner, or the restoration of the property to the owner, the property being valued in excess of $5000.

COUNT II

Charge: THEFTMinnesota Statute: 609.52.2(a)(1), with reference to: 609.52.3(3)(a)Maximum Sentence: Five years and/or $10,000Offense Level: Felony



Charge Description: The defendant, LISA MARIE SCHURHAMMER, intentionally and without claim ofright took, used, transferred, concealed or retained possession of movable property of another without theother's consent and with intent to deprive the owner permanently of possession of the property, theproperty having a value in excess of $1000.

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In some cases, defendant encouraged some of her clients to surrender policies from annuities with oneinsurance company and place the funds into their own personal bank account before using that samemoney to purchase a product from another insurance company. Defendant failed to disclose the policies’replacement statuses and, therefore, prevented the client from receiving a fair product suitability review.Those reviews may have resulted in the new insurance company denying the purchase and, therefore,would have prevented clients from suffering large surrender penalties with their old company. Additionally,some of these clients withdrew money from their insurance policies to fund these precious metalspurchases, which were ultimately retained without authorization by the defendant, and these individualsalso suffered premature surrender penalties due to the withdrawals.


VICTIMS - G.B. and L.B.

In May, 2016, G.B. and L.B. gave the defendant a check for $100,000 to purchase precious metals,specifically, gold. The defendant provided the victims with 50 gold buffalo coins, valued at $67,980.50. Thedefendant told the victims that the gold provider did not have enough gold coins to allocate to the entire$100,000 purchase. The defendant provided the victims with paperwork showing that the defendant paid

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$67,980.50 to Provident Precious Metals for the gold. Investigators found records from Provident PreciousMetals which showed that the defendant actually paid them $66,367.50 for the gold coins.

When the victimis requested the rest of their money back, the defendant told them that the gold dealer(Provident) may have already allocated the remaining money for future gold purchases, once more goldwas available. The remaining money was never returned to the victims. Financial records of the defendantshow that she personall spent the remaining money of the victims.

After some time, the defendant ultimately cashed in gold belonging to a third individual and gave thevictims $32,056.32. This still resulted in a shortage being owed to the victims in the amount of $1,576.18.

The above facts constitute complainant’s basis for believing that in May, 2016, at the offices of RetirementAmerica, LLC, 1700 2nd Ave. N., Sauk Rapids, Benton County, Minnesota, the above-named defendantcommitted the offenses described herein.

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4







WARRANT






ORDER OF DETENTION









vs.





5



DOB: 03/06/1959


Alias Names/DOB:

SID:

Height:

Weight:

Eye Color:

Hair Color:

Gender: FEMALE

Race:



Driver's License #:


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CntNbr

StatuteType

OffenseDate(s)



CaseNumbers

1 Charge 5/1/2016 609.52.2(a)(5)(i)Theft-Indifferent to Owner Rights

Felony TS991 N MN062095Y 16001612


Felony TS991 N MN062095Y 16001612

2 Charge 5/1/2016 609.52.2(a)(1)Theft-Take/Use/Transfer MovableProp-No Consent

Felony TT011 N MN062095Y 16001612

Penalty 5/1/2016 609.52.3(3)(a)Theft-Value of Property or Services$1001-$5,000

Felony TT011 N MN062095Y 16001612

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