Kenneth Rijock

Kenneth Rijock

Saturday, August 17, 2013

LIFE SETTLEMENTS COMPANY PRINCIPAL GETS FIFTEEN YEARS FOR MONEY LAUNDERING

Arrest mugshot
Steven Steiner, convicted in US District Court in Fort Lauderdale earlier this year of laundering $15m in illicit profits from the Mutual Benefits Corporation Life Settlements Ponzi scheme, was sentenced to fifteen years of imprisonment, by a Federal Judge. A Vice President of the company, and an owner, together with his two brothers, Steiner not only purchased real estate with his share of the Ponzi profits, he attempted to conceal his assets from the court-appointed receiver, who was seeking to accumulate funds to repay victims of the billion dollar scheme.

The defendant was convicted on eighteen counts, including:
(1) Money laundering
(2) Conspiracy to commit money laundering
(3) Conspiracy to defraud the United States
(4) Obstruction of justice


Reports say that the US Attorney asked the Court, at sentencing, for 22 years; defense counsel requested a five year sentence, arguing that Steiner's long involvement with charitable organizations was a major mitigating factor.

He, together with surviving brother Joel Steinger, face a major criminal trial in September, over the massive Ponzi scheme that they operated for a decade. The sheer volume of the fraud could result in what will, in effect, be life sentences for the pair. the case gave the life settlement industry a permanent black eye, which some observers believe it has not yet recovered from.


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