My husband sells insurance. IN his case, an acquaintance of his who is woefully ignorant of the insurance industry, thought that my husband could just lend his name, licence and signature to his new business venture (he wants to open a chain of insurance companies in the Houston area and my hubby has a great reputation) so that he will be able to get in quick with the various companies (be signed up with them) and basically, avoid the hard part of starting. He offered my husband a big chunk of money (signing bonus and ongoing commissions/residuals) for his participation. My husband would basically have nothing to do with it and this guy would hire brand new agents of various licensures to run things. My hubby would have no financial stake in it going into it other than GETTING money.
He refused. Why? Totally unethical (which the other guy didn't even realize, he is THAT ignorant, but he is offering enough money that many would have said yes). He would really have no input into anything and they really just wanted his signature when they need it. He gave up a lot of money, but he is keeping his reputation (so many people have no clue as to how much an ethical business man give up $ to keep his ethics and honor). Having your name being used to facilitate deals that you are clueless about is a really really bad idea if you want to stay in business.
Insurance and annuity work is sometimes very detailed and involved and deals with a great deal of money-ensuring that you are dealing with the right people, the right documents and the right accounts and that the customer understands what they are signing-it's critical stuff and a lot of hanky panky could go on. . .but it won't go on with my husbands' name affixed to it.
Only an idiot signs a blank piece of paper.