Atty Tied To $1B Mutual Benefits Scam Settles SEC Suit

Law360, New York (May 3, 2012, 1:29 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday settled a suit in Florida against an imprisoned Mutual Benefits Corp. attorney over his part in an offering fraud that scammed investors out of more than $1 billion by misrepresenting securities backed by life insurance policies.

Michael J. McNerney, who is in prison for five years after pleading guilty in a parallel criminal suit, agreed to a permanent injunction barring him from further violation of securities laws.

The SEC accused McNerney of fraud in the sale of unregistered...
To view the full article, register now.