Sentencing Day for Chief of $800M Insurance Fraud Scheme

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News Release: Associated Press
August 29, 2014

MIAMI (AP) -- The mastermind of an $800 million insurance scam that stands as one of the largest fraud schemes in Florida history is being sentenced by a federal judge.

A hearing is set Friday for Joel Steinger, former chief of Fort Lauderdale-based Mutual Benefits Corp. Steinger faces up to 50 years behind bars after pleading guilty in March to mail and wire fraud conspiracy charges. Steinger's lawyer is seeking a more lenient penalty.

Prosecutors say Mutual Benefits was a massive fraud scheme in which investors lost about $830 million between 1994 and 2004. There were about 30,000 victims around the world.

The now-defunct company bought life insurance policies from people with AIDS, cancer and other chronic illnesses and sold them to investors. Prosecutors say the numbers were manipulated and investors misled.

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