Vicki Gunvalson and her business partner, Ali Hashemian, are being sued by a former client, Diane Field, for financial elder abuse, negligence, and fraud. Field, who is 74 years old, claimed that Gunvalson and Hashemian pushed her to invest in a life insurance policy without properly disclosing the costs. She alleged that they misled her into believing she only needed to make a one-time payment of $300,000 when, in reality, she was required to make annual payments of the same amount.
Field stated that she met Gunvalson and Hashemian in 2019 when they promised to help her manage her finances during a difficult time in her life where her husband was in poor health and she was diagnosed with lung cancer. Despite feeling pressured and misled, Field signed a contract in December 2019 and made subsequent large payments towards the life insurance policy. Following George’s death, Field felt further manipulated into placing his funds into a standalone annuity account.
As Field continued to question the investment decisions made by Gunvalson and Hashemian, she was offered a lower premium option of $100,000 annually. Despite feeling uninformed and tied up in financial commitments she didn’t fully understand, Field agreed to the new terms and made the first payment. However, she soon realized that her death benefit had been reduced to $3.5 million, which was significantly less than what she had expected.
When it came time to make the next payment, Field discovered that she had over $600,000 in her account due to the previous premium payments she had made. Surprised by this excess amount, she reached out to Allianz directly and was informed that she didn’t need to make any additional payments. Feeling deceived and manipulated by Gunvalson and Hashemian, Field filed a lawsuit accusing them of elder financial abuse carried out with malice, oppression, and fraud.
This lawsuit against Gunvalson is not the first time she has faced legal action from former clients. In 2019, another client accused her of raising premium costs, but that case was dismissed. Gunvalson’s former co-star, Teddi Mellencamp, seemingly referenced the lawsuit in a social media post, quoting an iconic line from Gunvalson on the Real Housewives of Orange County, where she adamantly denied certain allegations against her.
The ongoing legal battle between Field and Gunvalson highlights the vulnerability of elderly clients when dealing with financial advisors and the importance of transparency and ethical conduct in financial management. It serves as a cautionary tale for individuals trusting others with their finances to ensure they fully understand the terms and conditions of their investments and seek independent advice if necessary. Gunvalson, Hashemian, and Coto Insurance have been contacted for comment, but as of now, no response has been provided.
