|
We do not buy
or sell
viatical contracts
(not the actual cover)
In sympathy
with people
from 86 nations
who lost loved ones
on 9-11 | |
Carrington Arrested for Viatical Fraud
PHOENIX, ARIZONA July 3, 2003Authorities nabbed 34-year-old Richard Dean Carrington, aka
Richard Dean Frank, outside his Scottsdale home on Thursday, June 26, 2003 and
charged him with selling fraudulent viatical settlement investment contracts to
Arizona investors.
Carrington is charged with 14 criminal counts of theft and two
counts of fraud. The schemes were carried out through two companies he operated,
Carrington Estate Planning Services and Carrington Investment Services.
This is not the first time Carrington found himself on the wrong of the law.
In two separate cases, the Commission charged Carrington with multiple and
repeated violations of Arizona securities laws:
 | In February 1998, Carrington agreed to stop selling unregistered
promissory notes and agreed to pay fines and penalties totaling $10,000. |
| In May 2002, the Commission charged Carrington with defrauding more than
600 investors who purchased $29 million in viatical contracts.
 | The Commission ordered Carrington to pay $500,000 over a three-year
period of time, pay a $50,000 fine, and turn over all remaining policies to
a third-party escrow agent. |
| The $500,000 was to be used to pay continuing costs to maintain the
insurance policies. |
| Carrington initially made a $50,000 restitution payment, but failed to
make any additional payments. |
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The June 26th arrest culminates a five-year investigation by the
Arizona Corporation Commission’s Securities Division and the Arizona Attorney
General’s office. Carrington is awaiting arraignment in police custody at the
Madison Street Jail. |
