There is a phone call to the insurance giant Allianz, complaining about Robert Bradford.

Records show there are more than a dozen law suits pending against Bradford, all accusing him of misleading people when he sells so-called "equity indexed annuities" -- a type of investment that locks up most of your money for years.

Bradford denies misleading people.

But we wondered: what would he tell one of our senior volunteers?

(Hidden camera)

Bob Bradford: The new kid on the block is what's called indexed annuities …

Bob Bradford thinks he's alone, but Dateline's hidden cameras are capturing his every word.

Bradford warns you shouldn't put money in if you plan to take it out early.

But remember, the key question is: will he be honest about the size of those surrender penalties if you do need the money.

Leon Morris: What happens if during the course of this thing I need to take out $50,000?

Bradford: OK. All right.

Leon Morris: I mean, how does that work?

Bradford: That would dip into it. And then you can do that. It's just like a CD. They would have a penalty for early withdrawal on anything over that 10 percent amount.

Bradford makes the penalty sound small,like a certificate of deposit at a bank.

Minnesota Attorney General Lori Swanson says that's clearly deceptive.

Lori Swanson: It's absolutely not a fair comparison. They're like night and day.

Chris Hansen: If I cash in a CD early, basically I lose some interest. What happens in I try to cash in early on an equity indexed annuity?

Lori Swanson: You lose your principal. You lose your original money.

Here's an example.

If you withdraw a $100,000 CD early, you lose interest -- but get all of your $100,000 back.

If you withdraw a $100,000 annuity, with a 10 percent surrender penalty you'd only get $90,000 back. And you'd lose the interest.

But we're about to discover that's not the only thing Bob Bradford is deceptive about.

Remember, he could make thousands of dollars in commissions on a sale.

So, he reaches into his bag of tricks and shows our senior volunteer a magazine where he's featured on the cover, along with the chairman of the federal reserve.

Bradford: You remember who Bernanke is? Ben Bernanke who--

Leon: I seen him on the television …

Bradford: Yeah. That's me right there.

Bob Bradford makes it sound like it's a big honor, something that made his mother proud.

Bradford: So my mother was -- this is the first time I’d ever been on the cover of the Rolling Stone, so to speak.

But wait a minute. Haven't we seen that same magazine before...

Agent: Some of you may have seen financial playbook magazine

… with a different agent on the cover?

Agent: Federal reserve chairman on the cover. Also, the cover story is an interview with Randy.

How could two different agents be featured on the cover of the same magazine?

Dateline discovered: if you're an insurance agent, it's easy.

All you have to do is go online to a special Web site, pay "Financial Playbook" several thousand dollars, pick a ghost-written article (I chose number #42, about annuities), and send in a picture (I used an old one of myself).

And before long, there I am on the cover of the new issue as a "Senior Advisor."

We showed what we discovered to Minnesota attorney general Swanson.

Lori Swanson: Boy, that-- this is part of the marketing ploy. Build trust, show you're reputable.

Chris Hansen: Then we found that for $1,500, we could get the magazine with my picture on the cover.

Lori Swanson: That's terrible. And you've captured it on tape, absolutely what we're hearing in all of these cases and investigations that we're bringing -- that these agents are not telling the truth.

When Bob Bradford returns to talk to Leon and try to close the sale, I decide to step in.

I haven't told Bradford I’m a reporter, yet, but he may be on to us because, suddenly, I’m getting answers our senior volunteer never heard.

Remember how he made those surrender penalties sound small, like CDs? Not anymore.

Chris Hansen: But let's say he had to get at some of this cash.

Robert Bradford: Yeah.

Chris Hansen: What would the penalty be?

Robert Bradford: In the first year it starts out at 16 percent.

A 16 percent penalty?

Our volunteer never heard that number during the sales pitch.

And remember that fake magazine Bob Bradford used to impress Leon?

It's time to show him what we found.

Chris Hansen: I found that magazine, that very same magazine, with a different agent's face on it.

Robert Bradford: Yeah, yeah.

At first, Bob Bradford acts like there's nothing wrong.

Chris Hansen: Now the reality is this, Bob. I looked around and I checked. And I contacted this outfit, and for $1,500, they put me on the cover.

Robert Bradford: All right.

Chris Hansen: What did you pay to have your picture on--

Robert Bradford: Oh, I don't remember.

Chris Hansen: You don't remember?

Robert Bradford: Oh no.

Chris Hansen: But you didn't write that article, did you?

Robert Bradford: No.

It's time to tell Bob Bradford he's been caught in the act by Dateline's hidden cameras.

Chris Hansen: I’m Chris Hansen, with Dateline NBC.

Robert Bradford: Oh, OK.

Chris Hansen: And we're doing a story on questionable practices of insurance salesmen who sell financial products to the elderly. And if there's anything else you'd like to tell us about your dealings with Leon or with anybody else, we'd certainly like to hear it.

Bradford: No. You don't put money in these things and turn around and take them out.

Bob Bradford denies he did anything wrong. And Financial Playbook told us they didn't know agents were using the magazine to puff up their credentials.

Bradford says he wasn't trying to mislead anyone, that he gives a full explanation of surrender penalties before he completes a sale, and he blames those lawsuits on plaintiff's lawyers advertising for clients.

But remember that complaint call about him to Allianz, the nation's biggest seller of indexed annuities?

In spite of customer complaints like that and a growing number of lawsuits alleging fraud, Allianz was one of the companies Bob Bradford was still selling for when he came to visit us.

Bradford: Mostly we're using a company out of Minneapolis called Allianz …

Last year, Attorney General Swanson sued Allianz and several other insurance companies, claiming they "failed to properly supervise" agents and encouraged deceptive and misleading sales practices.

Bhojwani testimony: …annuities play a vital role for seniors …

Insurance giant Allianz defends its products and says it's cracking down on salesmen.

Just last month, it terminated its relationship with Bob Bradford -- and no longer permits him to sell its products.

The president of Allianz declined an interview with Dateline, but he told a recent senate hearing he's implementing new safeguards to prevent deceptive sales techniques.

For example, he's started follow-up phone calls to seniors from the main office.

Gary Bhojwani: Allianz employees will call every fixed annuity purchaser aged 75 or older to go through the features of the product with them and to be certain that those features are understood.

And what about Tyrone Clark, the man who claims to teach insurance agents how to make millions selling annuities?

Tyrone Clark: That's fear. The presentation should have that impact.

Turns out, he doesn't want to talk to me about the lessons Dateline caught on hidden camera.

When I went to Clark’s office, a lawyer met us in the parking lot and told us to leave.

Chris Hansen: There are some things that go on at the seminar that we'd like to ask you about.

Raymond Jones: Thanks, but no thanks.

In a series of letters, Tyrone Clark’s lawyers said:

• that the quotes we used from Clark’s seminar were not "in full context"
• that Clark teaches agents to be "honest, ethical, and service-oriented"
• and it's the "duty" of an insurance agent "to present the facts, both pleasant and unpleasant, to customers"

They also said Dateline used an "unethical series of deceptions" by going undercover and using hidden cameras.

Leo Stulen: I’d been better off just to put it in the bank downtown.

For Leo Stulen, the man who lost thousands of dollars when he had to cash in an Allianz annuity early, there is some good news.

As part of a settlement with Attorney General Swanson, Allianz has agreed to pay restitution without admitting wrongdoing.

It means Leo and thousands of other Minnesota seniors who claim they were cheated will get a refund, plus interest.

Other lawsuits are pending against Allianz and other insurance companies nationwide.

Chris Hansen: What do you say to other retired folks who may be thinking about investing in an equity indexed annuity?

Leo Stulen: Don't.

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