Mastermind Of Massive Insurance Scam To Be Sentenced

FT LAUDERDALE (CBSMiami/AP) - The man behind one of the largest fraud schemes in the state's history will be sentenced Friday in federal court.

Joel Steinger was the former chief of Fort Lauderdale-based Mutual Benefits Corp which prosecutors say was a massive scam in which investors lost about $830 million between 1994 and 2004.

The now-defunct company bought life insurance policies from people with AIDS, cancer and other chronic illnesses and sold them to investors. Prosecutors say the numbers were manipulated and investors misled. There were about 30,000 victims around the world.

Steinger faces up to 50 years behind bars after pleading guilty in March to mail and wire fraud conspiracy charges. Steinger's lawyer is seeking a more lenient penalty.

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