Fla. Lawyer Convicted of Life Insurance Scam

In December 2013, a South Florida lawyer was convicted of scamming a total of $800 million in a massive insurance scam that was centered around death benefit investments. The lawyer, 64-year-old Anthony Livoti Jr., was convicted of money laundering as well as fraud conspiracy in conjunction with Mutual Benefits Corp. However, he was also acquitted on many other counts—but that won’t impact his decades-long prison sentence due to the sheer fraud size he was found guilty of participating in.

Mutual Benefits is now defunct but the company was responsible for duping a number of customers—mostly the elderly—out of their hard-earned cash. At the core of the company’s business was selling life insurance policies to those with chronic illnesses. Most of their customers had cancer, HIV or other debilitating diseases. According to reports, “hundreds” of people lost a combined $830 million. The co-founder of the company, Joel Steinger, will face trial in April 2014. Others involved have already pled guilty, including Steinger’s brother.

Sadly, the insurance scam allegedly perpetrated by Mutual Benefits isn’t a rarity and there are a number of other insurance company facing similar life insurance lawsuits. Meant to protect loved ones when a person passes, life insurance can easily get confusing—especially if a fraudster is committed to purposefully making the process confusing, overselling for no reason, or the policy involves big penalties for opting out. Elders are a particularly hot target since they often don’t have access to the information necessary to make informed decisions. While scamming the elderly is nothing new, it seems to have become more common in the digital era.

The popular show “What Would You Do?” recently highlighted just how common this fraud is becoming. A man playing a stereotypical Nigerian scammer pretended to fraud a woman via Skype at a populated café. The goal? To find out if anyone would intervene when the man was clearly telling the elderly woman (also an actor) that he was in Nigeria. While nobody took the initiative to intervene, one woman was finally pushed to reveal the scam—but only after the male actor repeatedly tried to engage her. Intervention is key to protecting the elderly, but oftentimes (just like on the show) it can come too late. Even with plenty of red flags, many people don’t take action to protect others or themselves from life insurance scams until the damage has already been done.

How to Spot a Life Insurance Scam

Spotting a scam can vary depending on the company and the details. However, if an annuity seems too good to be true, it probably is. It’s always wise to have an attorney check a policy before signing it. If the company has no history and the “testimonials” seem inflated or there’s no record with the Better Business Bureau, these can all be red flags. However, even some of the most popular and established insurance companies may be found guilty of fraudulent acts.

The best tactic is to do your research, consult with an attorney, and never sign anything without having it carefully reviewed. It’s easy to get lost in legal lingo—and getting out of an entrapping policy can be a nightmare. If you have an elderly loved one who feels taken advantage of with insurance policies, it’s time to take action.

Are You a Life Insurance Scam Victim?

Did you or a loved one take out a life insurance policy and feel that it’s a scam or you were taken advantage of? If so, you might qualify for a life insurance legal claim. Discover more when you visit the Life Insurance, Annuities Fraud Class Action Lawsuit Investigation. After submitting your information, an attorney will contact you if you have a case for a free annuities claim review.