Former Mutual Benefits Corporation Head Sentenced to 20 Years in Prison for His Role in $1 Billion MBC Scheme
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Former Mutual Benefits Corporation Head Sentenced to 20 Years in Prison for His Role in
Steinger previously pled guilty to conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. S.1349, as a result of his scheme to defraud investors in
Steinger is the final defendant to be convicted out of 13 charged as a result of the MBC scheme, which defrauded approximately 30,000 victims. As the de facto head of MBC, Steinger, along with conspiratorsSteven Steiner, a/k/a
According to the evidence presented in a related trial and summarized during Steinger's guilty plea, from approximately 1994 to
Steinger, already a convicted felon at the time of the MBC fraud, hid behind a figurehead company president to conceal a criminal and disciplinary history that otherwise would have prevented the company from obtaining a license to conduct business in
Evidence supporting his conviction also established that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In essence, the evidence demonstrated that Steinger and his co-conspirators were operating a Ponzi-like scheme, using new investor money to pay for earlier investor obligations, and that money from new investors was continuously required to prevent the MBC Ponzi-scheme from collapsing, which, ultimately, it did.
Co-defendant Steiner was also a founding principal of MBC, was actively involved in MBC's marketing and promotional activities, and encouraged investors to buy MBC's investments. On
Co-defendant Livoti, Jr. was convicted for his role in the MBC fraud on
Today's sentencing also resolved Steinger's more recent Case No. 12-CR-20123-Scola, charging conspiracy to commit mail and wire fraud against health insurers, where Steinger, his brother
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