⏱ 3 min read
A New York man has been caught red-handed trying to cover up a lucrative medical reimbursement scam that bilked investors out of millions in New Orleans.
James Michael KAFES, 57, pleaded guilty to conspiring to obstruct justice in an eight-count indictment that included charges of fraud and financial crimes. His scheme targeted investors with a supposed medical reimbursement account program called Classic 105.
The program, operated by a Louisiana business called The Total Financial Group, promised investors a loan to offset monthly fees. But the loan was secured by an insurance policy on the life of the employee-participant – a classic Ponzi scheme.
KAFES and his co-conspirator, Josiah David, conspired to obstruct a federal grand jury investigation into the scheme. They withheld evidence and discouraged an owner-investor from meeting with authorities. KAFES even testified falsely under oath before a federal grand jury on March 27, 2025.
KAFES faces significant prison time for his role in the scheme. His sentencing is pending.
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📋 Key Facts
- Crime: White Collar Crime
- Defendant: New York
- Location: LA
- Source: DOJ Press Release
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