GRIMY TIMES EXCLUSIVE: Joel Steinger, the mastermind behind the $1 billion Mutual Benefits Corporation (MBC) scheme, has been found guilty of conspiracy to commit mail and wire fraud. The former head of MBC, along with several conspirators, defrauded approximately 30,000 victims out of over $800 million.
Steinger, also known as ‘Joel Steiner,’ was the de facto leader of the operation that marketed viatical and life settlements to investors. He and his co-conspirators raised more than $1.25 billion before federal regulators shut down the scheme in 2004. The fraudulent activities spanned from 1994 until May 2004.
Under Steinger’s direction, MBC misrepresented key facts about its viatical settlements, including the life expectancies of policyholders and the risks associated with certain policies. New investor money was funneled to pay off earlier investors, a classic Ponzi scheme maneuver that ultimately led to the collapse of the operation.
Steven Steiner, another co-defendant and founding principal of MBC, was also sentenced to 15 years in prison after pleading guilty to charges including money laundering and obstruction of justice. Michael McNerney, an attorney licensed by the State of Florida, was convicted for assisting in the marketing of MBC’s fraudulent investments.
Steinger, already a convicted felon at the time of the fraud, had concealed his criminal history to obtain a business license. He is scheduled to be sentenced on June 6, 2014, marking the end of a lengthy legal battle.
This conviction serves as a stark reminder of the dangers of Ponzi schemes and the lengths some will go to defraud investors for personal gain.
RELATED: Joel Steinger Sentenced for $1B MBC Scheme
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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