Charges Brought in Insurance Scam
By JOHN SEEWER
.c The Associated Press
TOLEDO, Ohio (AP) - Federal and state investigators have charged 17 people in a nationwide insurance scheme they claim attempted to defraud 2,800 investors of $105 million.
The Ohio Department of Insurance on Wednesday said the investigation was the largest in agency history in terms of money and suspects.
The investigation centered on Liberte Capital Group, a Toledo company that buys and sells the life insurance policies of terminally ill people.
Liberte Capital bought the policies at a fraction of the payout value, giving the terminally ill money they can use right away. The company then sold the policies to investors, who were to be paid off when the person died.
The fraud occurred when the ill people, at the suggestion of brokers, obtained policies by concealing conditions such as AIDS, said Seth Uram, assistant U.S. attorney.
Liberte owner J. Richard Jamieson never warned investors that policies were fraudulent and could be canceled, Uram said. Many companies began canceling the policies before they could be claimed.
``Virtually every investor has lost their investment,'' he said.
Jamieson, 39, was charged with conspiracy to defraud and money laundering. He faces a maximum prison sentence of 20 years if convicted.
Prosecutors said Jamieson and James Capwill, who operated Liberte's escrow agent, laundered millions of dollars and spent it on cars and homes.
Jamieson was arrested Friday, and authorities are attempting to seize $105 million of his known assets, including a $1.4 million home, his vacation home and several companies.
Capwill, 37, of Aurora in suburban Cleveland, was indicted on the same charges.
Both appeared in U.S. District Court on Tuesday.
Jamieson's attorney, J. Scott Broome, denied the allegations, and said his client blames Capwill for the thefts. Capwill's attorney, John Pyle, would not comment.
The 15 others indicted were accused of filing at least five separate false insurance policy applications, Uram said. One person filed 17 different policy applications.
AP-NY-01-23-02 1828EST |
