These are some of the convictions for people who pocketed tons of cash with fraudulently acquired life insurance. The restitution amounts are based on the losses to investors.
- American Benefits Services/Financial Federated (a Ponzi scam) – federal prison
- Zane Balsam sentenced to 30 years, $50 million restitution, etc. (04/08/02)
- Frederick Brandau, sentenced to 55 years, $117 restitution, etc. (12/08/01)
- Harvey Brandau (Fred’s brother) sentenced to 1 year, 3 mos., $858, 456 restitution
- Ivan Burgos sentenced to 3 years, $nearly $2 million restitution(10/04/01)
- Attorney Garland Hogan sentenced to 27 years, nearly $109 million restitution (04/01/02)
- Raymond Levy sentenced to 14 years, $117 million restitution (11/30/01)
- Alan Lewis sentenced to 12.5 years, nearly $120 million restitution (04/08/02)
- Attorney Jeffrey Paine sentenced to 5 years, $80 million restitution (08/03/01)
- Gary Pierce sentenced to 20 years $31 million restitution (040/02/02)
- Cheryl Poindexter sentenced to 1 year, nearly $760 million restitution (6/18/01)
- Wanda Tirado (aka Tiraldo) sentenced to 21 years, $90 million restitution
Note: Restitution orders are meaningless since all known assets were seized, sold, forfeited, and the funds distributed by the receiver.
Of some interest is that the ABS/FinFed defendants were incarcerated at Coleman Low in central Florida, with the exception of attorney Hogan (Manchester, KY).
Most of these defendants are near or in their sixties now, which means some are likely to die in prison.
- USA v. C. Keith LaMonda, Jesse W. LaMonda, and John L. Maynard (indicted 07/13/05)
- GUILTY March 7, 2007, after more than 80 days in trial and 8 days jury deliberation. Keith released on $1 million bail, Jesse released on $100 thousand bail, their former partner, while their ex-lawyer and partner John Maynard, remained free on $50 thousand bail.
- Sentencing scheduled for July 10, 2007. The LaMonda brothers, who defrauded thousands of investors through their Florida company, Accelerated Benefits Corp., and their Texas company, ABC Viaticals, face possible life sentences.
- Read the original Indictment and the Superseding Indictment.
- Peter Lombardi, president of Mutual Benefits Corp., sentenced to 20 years. Read the Indictment and the Judgment.
- Dr. Clark Mitchell, who signed his name to false life expectancy reports for Mutual Benefits Corp., pleaded guilty to securities fraud, sentenced to ten years in prison. (March 27, 2007) Read the Indictment.
- Dale Francis, 56, who bilked investors out of $15 million when he ran Heritage Financial, an affiliate of Alpha Captial Group, was sentenced to 12 years in prison. (12/02/05) By comparison, Anne DiLeo of Alpha was sentenced to 34 months and was released after 18 months.
- LifeTime Capital Inc. principals, David W. Svete and Ron Girardot sentenced: Svete to 16 years and 8 months in federal prison and Girordot to five years. (06/05)
- Larry Tyler (Advanced Financial Services, associated with Trade Partners Inc.) sentenced by federal court in Texas to 8 years (05/19/05)
- Carmen Palmieri (National Medical Funding) sentenced to 30 years by state court in San Diego, California (01/14/04)
- Roger Sande, California sales agent for Liberte Capital Group sentenced to 7 years and 4 months in state prison. (11/03) Released in 2006, after less than three years.
- J. Richard Jamieson (Liberte Capital Group) sentenced to 20 years in federal prison. (11/01/03)
- Stephen Keller and other principals of Kelco sentenced by federal court in Kentucky to terms ranging from 12 to 14 years (8/03)
- Leroy Walton, a Georgia viator who cleansheeted an estimated 20 policies that were resold to investors by Alpha Capital, was sentenced by federal court to 30 months. Most viators in other states were sentenced to probation, including Peter Barbosa of California who cleansheeted an estimated 30 policies that were bought by many viatical companies and resold to unsuspecting investors.
- Charles “Chuck” Cole of California, manager of Genesis Viatical, a licensed viatical broker, sentenced by the federal court in Kentucky court to 18 months. (04/03)
- James Capwill CPA, who embezzled funds from settlement companies through his company, Viatical Escrow Services. Sentenced to 12 years in federal prison on January 29, 2001.
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· Several insurance agents and a viators were sentenced by U.S. District Court, Eastern District of Tennessee, Chattanooga, for obtaining $15 million worth of fraudulent life insurance policies which were sold to investors by Alpha Capital Group. As of October 2000, 11 defendants pled guilty. Maximum penalties are five years imprisonment for mail fraud, 10 years imprisonment for money laundering. These individuals who pled guilty and received the following sentences:
- Debra Jean Tyndall, 45, of Tennessee, charged with using her position as an insurance agent to assist AIDS patients in obtaining fraudulent life insurance policies. Tyndall was said to have substituted the saliva of healthy individuals when saliva tests were required of insurance applicants. Sentenced to 21 months in prison and 2 years of supervised release.
- David Len Morrison – 24 months in prison, 2 years probation
- Chad O. Wilbanks, 37, of Chattanooga, pled guilty to mail fraud and money laundering: 21 months in prison, 2 years probation
- Paul C. Hamby – 18 months in prison, 3 years probation, AND restitution of $58,150
- Bret Douglas Adams, 36, of Chattanooga, pled guilty to mail fraud and money laundering: 18 months in prison, 3 years probation
- Floyd Phillip Barrow, 39, of Chattanooga, solicited AIDS patients: 13 months in prison, 2 years probation
- Robert Angle – 6 months home detention, 3 years probation
- Bryan Whisnant – 6 months home detention, 3 years probation
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NOTE: The links do not lead anywhere–yet. We are still rebuilding this website. If you are interested in the details, bookmark this page and do return–or send email to ggwolk@Viatical-Expert.net to ask to be notified.
P.S. More convictions will be added. There are many more. This is intended to make you do your due diligence, whether you are an investor, a sales agent, or an insured.