MBC Managers Plead Guilty
Two managers from Mutual Benefits Corp. pleaded guilty to securities fraud and agreed to pay $830 million in restitutions to investors. Carol Trainia and Bari Wiggins both pleaded guilty to one count of conspiracy to commit securities fraud. Both will face up to five years in jail. Mutual Benefits, which sold investment interests in life settlements, was closed by federal regulators in May 2004.
Traina, who worked as an office manager, misrepresented the safety and the security of the investments and distributed misleading life expectancies. Wiggins took the insurance policies, despite knowing that the sales agents were misleading investors. Sentencing in scheduled for May 8.
Related Links:
Legal View: Securities
Two Enter Guilty Pleas in Investment Fraud Case
Mutual Benefits Corporation - Viatical Fraud
Reports on Mutual Benefits Corp.
Mutual Benefits Viatical Settlement Fraud