Marion retiree, Iowa insurance commissioner warn seniors about fraud

A Marion retiree is warning other seniors to be on guard against investment and insurance fraud.

Martha-Jo Ennis, who taught for 44 years in Cedar Rapids, never understood how anyone could fall for an investment scheme until it happened to her. She lost her retirement savings and an inheritance.

Ennis, 80, was among numerous Iowans who lost millions of dollars in a Ponzi-type scheme orchestrated by Noah Aulwes, former owner of Covenant Advisors of Cedar Rapids, Iowa, according to the Iowa Insurance Division.

“I got royally taken,” Ennis said Monday. “I thought I was taking all kinds of precautions.”

Aulwes pleaded guilty last year to theft in the first degree, securities fraud and money laundering and received a prison sentence of up to 10 years. The fraud took place between March 2007 and May 2010.

Iowa Insurance Commissioner Nick Gerhart is using Ennis as an example of what happens when con artists target the elderly. He has launched a statewide “Iowa Fraud Fighters – Shield Your Savings” public education program to educate and empower Iowans to combat and report investment and insurance fraud.

In Ennis' case, Gerhart said, Aulwes preyed on retirees, using charm and Christianity to get a foot in the door and gain victims' trust. He convinced victims to invest in hedge funds, real estate, private venture and other sub-funds through Covenant's private placement fund.

“Noah presented seemingly good investments, like buying foreclosed homes to be resold for a profit,” said Ennis, “but unfortunately the profits were only on paper, and when we tried to get our money out, it was gone.”

The experience – and loss of her retirement savings and inheritance – “ruined my life,” Ennis said, “and wrecked my relationship with my family.”

According to Gerhart, con artists are targeting Americans age 60 and older. They swindle more than 5 million Americans out of almost $3 billion a year, according to a study he cited.

“Unfortunately, many smart Iowans have fallen victim to these very slick and sophisticated investment scammers, and some have lost their entire life savings,” Gerhart said.

According to Gerhart, Iowans need to take the time to double-check investment offers and verify whether the adviser and offer are legitimate. The Iowa Insurance Division has created a website, www.IowaFraudFighters.gov, to help educate Iowans on common investment and insurance scams and provide tips to prevent fraud, verify investment offers and report fraud. The site includes answers to frequently asked questions and a checklist of information to gather from investment advisers to verify the legitimacy of the offer and ensure the investment adviser is licensed.

The “Iowa Fraud Fighters -- Shield Your Savings” program also includes six consumer outreach and educational forums across the state, with the first forum kicking off at Park Place Event Centre in Cedar Falls Sept. 24. Forums will also take place at the Sioux City Convention Center Oct. 29, Honey Creek Resort in Moravia Nov. 21 and three additional locations in spring 2014.

“These forums give Iowans the opportunity to speak with several government agencies and learn about the state resources available to help prevent fraud from happening to them or a loved one,” Gerhart said. “We also want Iowans to know we are here to help them take charge in the fight against fraud and report fraud when it occurs.”

Gerhart, Department on Aging Director Donna Harvey and representatives from Iowa Attorney General Tom Miller's office, Area Agencies on Aging and Senior Health Insurance Information Program will present the program.

Registration begins at 11:30 a.m., lunch and presentations conclude at 1:30 p.m. and informational booths staffed by agency representatives and AARP, a forum assistance provider, will close at 2 p.m. To RSVP, call 866-559-7114 or visit www.IowaFraudFighters.gov by Sept. 19.

The Iowa Insurance Division has general control, supervision and direction over all insurance and securities business transacted in the state, and enforces Iowa's laws and regulations. It investigates consumer complaints and prosecutes companies, agents and brokers engaging in unfair trade practices.

Consumers with insurance or investment questions or complaints may contact the Insurance Division at 877-955-1212, or visit the division on the Web at www.iid.state.ia.us.

Comments: (319 398-8375;

james.lynch@sourcemedia.net