Insurance Agency Owner Daniel Rosenbaum Sentenced to 7 Years for Selling Clients Fake Annuities

Case from 2024 (U.S. Attorney's Office release: Feb. 15, 2024). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Daniel M. Rosenbaum, 56, of Brown Deer, Wisconsin, owned Alexander & Rosenbaum Financial Group LLC, an insurance agency in Kenilworth, Illinois. He was sentenced Feb. 13, 2024, to seven years in federal prison for taking more than $1 million in annuity premiums from clients for policies he never bought, according to the U.S. Attorney's Office for the Northern District of Illinois [1]. He pleaded guilty in 2023 to wire fraud. U.S. District Judge Manish S. Shah imposed the sentence.

How the scheme worked

According to the U.S. Attorney's Office [1]:

1. Collecting premiums. Starting in 2016, Rosenbaum collected more than $1 million in annuity premiums from at least 18 clients, including friends and family members.
2. No policies. He never bought the annuities. He spent the money on spousal and child support, credit card bills, vehicle and other loan payments, and purchases at a jewelry store.
3. Fake paperwork. To hide the fraud, he gave clients fake annuity documents. Some carried logos of real insurance companies that he had cut and pasted into them.

He also filed three fraudulent Paycheck Protection Program loan applications, collecting $53,537. One was in his own name and two were in the names of close family members who didn't know. He also collected $65,826 from the State of Illinois with two fraudulent unemployment applications, one in his name and one in a close family member's name without her knowledge.

"Not only was Rosenbaum stealing his clients' money, but he was also leaving them without the annuity coverage they expected to have," Assistant U.S. Attorney Prashant Kolluri wrote in the government's sentencing memorandum, as quoted in the release. "Without that coverage, a number of his clients suffered substantial financial hardship."

The person sentenced

Daniel M. Rosenbaum, 56, Brown Deer, Wis. [1]

• Plea: guilty to wire fraud (2023).
• Sentence: 7 years in federal prison, imposed Feb. 13, 2024.
• Investigation: FBI Chicago, with help from the South Chicago Heights, Ill., Police Department.

Red flags

• Paying an agent personally, or through the agency's own account, instead of paying the insurance company directly.
• Policy documents that come only from the agent, with no mail, statements or online account access from the insurer.
• Logos or formatting that look pasted in or inconsistent.

What to do if you're targeted

1. Call the insurer directly, using a number from its official website, to confirm your annuity exists and premiums were received.
2. Check the agent's license with the Illinois Department of Insurance or your state's insurance regulator.
3. Report fraud to your state insurance department and to the FBI at ic3.gov.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Daniel M. Rosenbaum, 56, Brown Deer, Wis.	N.D. Ill.	Pleaded guilty to wire fraud (2023); sentenced Feb. 13, 2024, to 7 years	[1]

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Owner of Suburban Chicago Insurance Agency Sentenced to Seven Years in Prison for Swindling More Than $1 Million From Clients," Feb. 15, 2024. https://www.justice.gov/usao-ndil/pr/owner-suburban-chicago-insurance-agency-sentenced-seven-years-prison-swindling-more-1

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