ENCINO - An Encino life insurance agent has been arrested on suspicion of swindling an elderly millionaire into making him a beneficiary of her estate.

Donald Derieg is awaiting arraignment on felony charges of grand theft and elder financial abuse following a state insurance department investigation. He was arrested Tuesday and his arraignment on Wednesday was postponed.

The 49-year-old Derieg, a former financial adviser with Wachovia Securities, allegedly had a romantic relationship with the woman, who was in her late 80s.

Insurance Commissioner Steve Poizner says Derieg made medical and financial decisions for the woman and became a trustee and beneficiary of her estate.

When the woman died in 2007, he got $1.2 million, more than half her estate.

Wachovia later fired Derieg. He remains jailed on $520,000 bail.

Attempts to reach his defense attorney were not successful on Wednesday.