Insurance Agents Admit To $29M Annuities Fraud

Law360, New York (July 6, 2012, 1:49 PM EDT) -- Two principals of bankrupt First Americans Insurance Services Inc. pled guilty Thursday to duping investors with a $29 million Ponzi-like annuities investment scheme run through their Nebraska insurance business.

Stella M. Levea, 55, and James P. Masat, 67, pled guilty to one count of mail fraud each and could face up to 20 years in prison, a $250,000 fine each and an order to pay restitution of between $2.5 million and $20 million, according to their pleas. Sentencing is scheduled for Sept. 6.

Masat's attorney Victoria...
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