Filed Under:Annuities, Variable

Judge: Companies lost $46M in RI investment fraud

PROVIDENCE, R.I. (AP) — A federal magistrate judge has determined an investment fraud that preyed on the dying cost insurance companies and bond issuers $46 million.

U.S. Magistrate Judge Patricia Sullivan issued her finding on Wednesday.

Her recommendation will be used when Joseph Caramadre and Raymour Radhakrishnan are sentenced.

They pleaded guilty last year to wire fraud and conspiracy. Caramadre was a well-respected attorney and Radhakrishnan was his employee.

They illegally used personal information from terminally ill people to purchase bonds and annuities that would pay out when a person died.

Sullivan says $33 million of the $46 million loss happened after Radhakrishnan joined the scheme.

The numbers will be used to help determine how much restitution the men should be ordered to pay.

Sentencing is scheduled for Dec. 16.

 

Copyright 2015 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Nichole Morford

Nichole Morford
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