Friday, September 27, 2013
A $168 million California lottery winner is suing his financial advisers, claiming they cost him millions in bad investments while taking huge commissions.
After Kevyn Ogawa, a 32-year-old Whole Foods worker, won $70 million after taxes, he hired Clinton Hodges and Kyle Dunphy from EFG Capital to be his exclusive financial advisers.
These licensed attorneys and insurance agents persuaded Ogawa to buy four life insurance policies from four different companies, earning the two about $1 million in commission. They earned further commissions after encouraged Ogawa to purchase several expensive pieces of real estate, which saddled him with $27 million in debt.
Ogawa became suspicious of his advisers two years later after they persuaded him to surrender his existing policies and take out one $600 million policy. Ogawa met with a different adviser who told him Hodges and Dunphy were trying to make a multi-million commission on the deal and that his existing policies were “highly unsuitable for him.”
See Rebekah Kearn, Winner of $168 Million Lottery Awakens to Financial Nightmare, Courthouse News Service, Sept. 24, 2013.