Four indicted in $1B insurance fraud scam
MIAMI (AP) – Four men are facing federal charges in a $1 billion Miami life insurance fraud first exposed in 2004.
A 25-count grand jury indictment Monday charges the four played roles in a scam that affected more than 28,000 Mutual Benefits Corp. investors. The company sold investments based on life insurance policies for the elderly, AIDS patients and terminally ill people. The longer a person lives, the less valuable the investment becomes.
Prosecutors say MBC failed to disclose risks, falsified life expectancy figures and mismanaged premium funds.