Kyle Busch and wife, Samantha Busch
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NASCAR Star Kyle Busch Sues Insurance Giant Over $8.5 Million Retirement Scam

Posted by AR1 staff

NASCAR Cup Series champion Kyle Busch and his wife, Samantha (pictured together), are taking legal action against Pacific Life Insurance Company and its agent, Rodney A. Smith. The couple claims they were tricked into buying expensive life insurance policies pitched as a foolproof retirement plan, only to lose millions when the truth came out.

–by Mark Cipolloni–

Filed in Lincoln County, North Carolina, the lawsuit accuses the company and agent of fraud, misrepresentation, and shady business practices.

How It All Started

Kyle and Samantha Busch, high-profile figures in the racing world, were looking for smart ways to secure their family’s future after his days on the track. In 2018, they turned to Pacific Life and agent Rodney A. Smith, who operates through Red River LLC. Smith sold them Indexed Universal Life (IUL) policies—complex insurance products that double as investments. These were marketed as “tax-free retirement plans” that would grow on their own and provide steady income without the headaches of traditional investing.

The Busches trusted the pitch. “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,” Kyle Busch said in a statement. “We trusted the people who sold them, and the name Pacific Life. But the reality is far different. What was pitched as retirement income turned out to be a financial trap.”

The Big Allegations

According to the lawsuit, Pacific Life and Smith fed the couple rosy projections that hid the real risks. They showed multiple sales illustrations—fancy charts promising big returns—but had the Busches sign a “placeholder” version that could be tweaked later. This allegedly broke state insurance rules, which require clear, fixed disclosures.

Worse, Smith had a sketchy past he never mentioned. He got in hot water with the North Carolina Department of Insurance for lying on his license application, including hiding a criminal conviction. The suit claims Pacific Life knew (or should have known) about this but still let him handle multimillion-dollar deals. “Pacific Life either knew or should have known of this history but nonetheless entrusted him with multimillion-dollar product sales to the Plaintiffs,” the filing states. “Neither Pacific Life nor Smith disclosed these conflicts or disciplinary histories to Plaintiffs.”

The core complaint? These IUL policies aren’t the golden ticket they were sold as. Hidden fees and costs are eating away at the value, turning what should be a nest egg into a money pit.

The Stunning Financial Hit

The Busches poured more than $10.4 million into premiums over the years. But after subtracting the policy’s current cash value—which keeps shrinking due to surprise charges—their out-of-pocket loss tops $8.58 million. That’s a massive blow for anyone, let alone a family building a legacy in motorsports.

Kyle Busch didn’t mince words about the betrayal: “I never thought something like this could happen to us.”

What’s Next in Court?

The lawsuit hits Pacific Life with claims of violating insurance laws, failing to oversee their agent, and straight-up misleading customers. The Busches, represented by RP Legal, want their money back plus damages. So far, Pacific Life hasn’t commented, and neither has Smith.

This case shines a light on the dangers of complicated financial products, especially when sold by folks with questionable track records. For the Busches, it’s not just about the dollars—it’s about trust shattered in an industry meant to protect families like theirs. As the case unfolds in North Carolina courts, racing fans will be watching closely to see if justice laps the scammers.