45. Mutual Benefits Corporation
Year: 1994-2004
Approx. Amount: $835 million*
Company / Person Involved: Joel Steinger
Another Florida-based scandal was that of the Mutual Benefits Corporation, whose principal defrauder was named Joel Steinger. The Ponzi scheme caused investors to lose $835 million. Steinger founded Mutual Benefits Corporation, listing himself as a consultant instead of a founder because he had a criminal background and was barred by the SEC from training securities.
Mutual Benefits Cooperation @ConnedFortune / Facebook.com
MBC purchased discounted life insurance policies from people with terminal illnesses like AIDS or cancer, as well as elderly individuals. They then sold participation shares in the death benefits to their investors, promising high returns even though they knew that the policy-holders were going to die sooner. Steinger received a 20-year prison sentence for being the ringleader, while thirteen other people involved with MBC either pleaded guilty or were convicted at trial.