Mutual Benefits Corp. Ponzi Scheme Back in the News
Steven Steiner, a former vice president of Mutual Benefits Corp., and his partner Henry Fecker III are waiting for a Miami jury to decide their fate. The two are charged with laundering millions of dollars through residential real estate, hiding assets from authorities, and lying to a court-appointed receiver, according to a Miami Herald article titled “Jurors deliberating in money-laundering trial linked to South Florida ‘Ponzi scheme’.”
Mutual Benefits Corp. (“MBC”) was the viatical and life settlement company that raised more $1.25 billion from over 30,000 investors worldwide from October 1994 through May 2004. A viatical or life settlement is an investment in which the investor purchases a right to receive the proceeds on a terminally ill or elderly person’s insurance policy when the insured dies.
A 2005 SEC indictment alleged that Steiner and others participated in a wide-scale fraud involving the sale of investments, falsely promising investors “safe” and “secure” investments when they knew that MBC had, among other things, improperly acquired policies, pressured doctors to rubber-stamp false life expectancy figures, and mismanaged escrowed premium funds in a “Ponzi” scheme fashion.
During a month-long February trial that just ended, Steiner denied allegations of fraud and insisted that he complied with the SEC settlement. He has been in jail since August 2011, and faces a 54-count indictment that could result in significant additional prison time.
Fort Lauderdale Securities Litigation and Arbitration Attorney
Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.
