A Ft. Lauderdale man has been convicted of money laundering and obstruction of justice in connection with a massive fraud scheme.
Steven Steiner, 60, also known as Steven Steinger, was found guilty on 19 of 54 counts, including conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses.
The scheme, which involved the Mutual Benefits Corporation (MBC), laundered and concealed over $15 million in proceeds derived from the MBC fraud, according to evidence presented at trial. Steiner was a founder, principal, and Vice President of MBC and received more than $15 million in proceeds from the MBC fraud through two shell corporations that he controlled, Camden Consulting, Inc., and SKS Consulting, Inc.
The jury found that Steiner engaged in money laundering transactions designed to conceal the source, location, ownership, and control of his proceeds from the MBC fraud. He also acted to obstruct the SEC, the MBC receiver, and the United States District Court.
Steiner was acquitted on 35 counts, including his co-defendant Henry Fecker, III. Steiner is scheduled to be sentenced by Judge Kathleen M. Williams on May 8, 2013.
The MBC scheme involved purchasing life insurance policies from persons suffering from AIDS, chronically ill, and elderly persons. The policies were then sold to approximately 30,000 investors, who were told that their principal and returns were paid by the insurance companies. However, evidence at trial established that MBC misrepresented various material facts relating to its viatical settlements, resulting in investors losing over $750 million.
According to the evidence presented at trial, Steiner used new investor money to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. As the fraud continued, investor money was required to prevent the MBC Ponzi-scheme from collapsing.
The SEC filed a civil enforcement action in the United States District Court for the Southern District of Florida against MBC and various relief defendants, including Steiner’s shell corporations, in May 2004. United States District Judge Federico A. Moreno entered an order appointing Coral Gables attorney Roberto Martinez as the receiver for MBC, with the mandate to identify, secure, trace, and recover the assets of MBC.
Defendant: Steven Steiner (a/k/a Steven Steinger)
Criminal Charges: Conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses
City and State: Ft. Lauderdale, Florida
Exact Date: Trial occurred before U.S. District Judge Kathleen M. Williams, and sentencing is scheduled for May 8, 2013
Sentence or Outcome: Steiner is scheduled to be sentenced by Judge Williams on May 8, 2013.
Dollar Amounts: Over $15 million in proceeds derived from the MBC fraud, and over $750 million lost by investors
Related Federal Cases
- Dennis G. Sartain, Tax Evasion and Money Laundering, Florida 2008 · Florida
- Patrick Merrill Brody, Wire Fraud and Money Laundering, Utah 2012 · Florida
- Joseph M. Palazzo, Mail Fraud, Conspiracy to Commit Money Laundering, Wire Fraud, Ohio 2011 · Florida
- Clarence Cornwell, Bank Fraud and Money Laundering, Ohio 2010 · Florida
- Joseph Palazzo, Mail Fraud and Money Laundering, Ohio 2024 · Florida
Key Facts
- State: Florida
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
