NASCAR driver Kyle Busch claims he was scammed for $8.5M

Kyle Busch has opened a lawsuit against an insurance firm after putting $10.4M into the program

2-time NASCAR Cup Series champion driver Kyle Busch along with his wife Samantha have opened a lawsuit claiming a loss of $8.5M in an alleged insurance scam.

They are claiming that they were misled into purchasing life insurance policies as they were led to believe that they were retirement plans.

The family claims they have put $10.4 million into the program. In the court filing, they claim their out-of-pocket losses exceed $8.58 million.

The lawsuit was filed on October 14th in Lincoln County, North Carolina. It’s against the Pacific Life Insurance Company.

The policy was partially marketed by agent Rodney A. Smith through his business Red River LLC. The Busch family claims the risks of the policy were not disclosed.

The couple is claiming they were led to believe that they were actually getting into a tax-free retirement plans. They expected the policy to provide self-funding retirement income.

The 40-year-old NASCAR Cup Series driver is currently in his 23rd season of competition in the division. His last win came in 2023 with Richard Childress Racing.

Kyle Busch statement

“We’ve always tried to take the hardest chapters of our life — infertility, loss, setbacks — and use them for good,” Kyle Busch posted.

“Today is one of those moments. We are sounding the alarm on a hidden insurance scam involving policies being sold by Pacific Life and other insurance carriers. These are being pitched as “smart retirement planning” or a way to “set up your children’s future,” but too many families are being misled and left with devastating financial loss.”

“And it’s not just public figures — it’s everyday hardworking Americans who trusted the system and are now left with little to no way to recover what was taken.”

“We’re sharing our experience so others don’t have to go through this without warning. We were mislead. If you’ve been approached with a “no-risk” retirement plan tied to an index universal life product (IUL)…. RUN!”

“Your future matters. Your family’s security matters. You deserve transparency.

“I never thought something like this could happen to us,” Kyle Busch continued.

“These policies were sold to us as part of a retirement plan — something safe and secure that would grow tax-free and protect our family long after racing. We trusted the people who sold them, and the name Pacific Life. But the reality is far different.”

Busch added, “What was pitched as retirement income turned out to be a financial trap.”

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Court filing

“In addition to the widespread misconduct and fundamental flaws in these policy designs, Pacific Life failed Plaintiffs by even allowing Rodney Smith to be involved in these transactions. Smith’s regulatory history in North Carolina alone should have prevented him from structuring, marketing, or selling such complex and high-value IUL policies.”

“The North Carolina Department of Insurance disciplined Smith for providing false and misleading information on his license application, including failing to disclose a criminal conviction.”

“These violations were matters of public record and should have disqualified Smith from marketing, servicing, or selling complex, high-value financial products on behalf of Pacific Life.”

“Pacific Life either knew or should have known of this history but nonetheless entrusted him with multimillion-dollar product sales to the Plaintiffs.”

“Neither Pacific Life nor Smith disclosed these conflicts or disciplinary histories to Plaintiffs, even as they marketed themselves as fiduciary-level retirement professionals performing at the highest of ethical standards.”

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Links

Kyle Busch | NASCAR