Insurance Exec Gets 60 Years For $485M Life Settlement Fraud

Law360, New York (October 23, 2012, 6:11 PM EDT) -- A Virginia federal judge on Tuesday sentenced the ex-president of Costa Rica-based Provident Capital Indemnity Ltd. to 60 years in prison for allegedly wheedling investors of their savings in a $485 million life settlement scheme.

U.S. District Judge John A. Gibney Jr. sentenced Minor Vargas Calvo, 61, to 60 years for the scam, which prosecutors said involved using fraudulent financial statements and bogus reinsurance agreements to sell more than $485 million worth of bonds guaranteeing life settlement investments.

“Mr. Vargas masterminded a criminal reinsurance company that...
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