Feds Add Laundering Charges To $670M Bond Fraud Case

Law360, New York (October 5, 2011, 10:24 PM EDT) -- Federal prosecutors in Virginia on Monday tacked charges of money laundering onto an indictment accusing a Costa Rica-based insurer’s president, along with the insurer’s auditor, of selling some $670 million in fraudulent guarantee bonds on life insurance settlements.

A superseding indictment filed in Virginia federal court adds three counts of money laundering to charges of conspiracy, mail fraud and wire fraud against Minor Vargas Calvo, president of Provident Capital Indemnity Ltd.

The U.S. Department of Justice indicted Calvo, PCI and PCI’s outside auditor, accountant Jorge Castillo,...
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