Clive Insurance Salesperson Locks Down 19 Years for $3M Retirement Savings Heist

DES MOINES, IA – In a devastating blow to dozens of elderly victims, Clive insurance salesperson Zachary James Flaherty, 48, was sentenced to 18.5 years in federal prison for wire fraud and six months for contempt of court, resulting in a total of 19 years behind bars.

According to public court documents and evidence presented at sentencing, Flaherty masterminded a vast 17-year fraud scheme, defrauding over 30 individuals out of all or portions of their retirement savings and other monies. The staggering total loss exceeded $3 million, with victims from Iowa, Kansas, Missouri, and Nebraska.

“Flaherty’s victims were elderly, with the oldest being 93 years old at the time of the fraud. Most of the victims had limited financial knowledge, making them easy prey for the cunning insurance salesperson,” said a DOJ spokesperson.

Flaherty developed close relationships with his victims, taking them out to eat, buying them gifts, and helping with chores around their house. At least six of Flaherty’s victims were recently widowed when he exploited them, and he assisted with funeral arrangements or related matters for multiple victims’ spouses.

Flaherty gained access to his victims’ monies by lying to them about numerous matters, including information about the returns and bonuses they could receive by investing with him, their ability to make penalty-free withdrawals of their funds, and the losses they could incur. Once his victims had “invested” with him, he continued to misrepresent and conceal information about the returns the victims were earning, the amount of money victims had invested, and the costs and penalties associated with the investments.

Flaherty used two primary approaches to defraud his victims. His first approach was to encourage his victims to write checks to him or one of his businesses, promising to invest the funds on their behalf. However, Flaherty spent the money on himself, his family, and his businesses instead. His second approach was to invest his victims’ funds into annuities, for which he received over $1 million in commission payments from insurance companies. To obtain annuities on his victims’ behalf, Flaherty submitted documents to insurance companies containing false misrepresentations, including forged signatures for his victims.

“Flaherty’s actions betrayed the trust of his victims, shattered their faith in other people, and left them with limited financial resources,” said a DOJ spokesperson. “Several victims lost nearly all their life savings, and others can no longer afford medical or assisted-living care. Victims also reported suffering health problems as a result of the increased anxiety and stress caused by Flaherty’s crimes.”

Flaherty’s conviction for contempt of court resulted from his violations of court orders issued in February 2024. Those orders prohibited Flaherty from selling or dissipating his personal property, which could be used to pay some of the money back to victims. However, Flaherty sold and attempted to sell and conceal several assets in March and April 2024, demonstrating his blatant disregard for the law.

The court ordered Flaherty to pay over $2.4 million in restitution to the victims of his fraud. As Flaherty begins his 19-year sentence, the Grimy Times urges victims to come forward and seek justice for their losses.