Scott + Scott, LLC Files Class Action Lawsuit Against Mutual Benefits Corporation on Behalf of Investors Scott + Scott, LLC Announces Last Two Days to Sign With Firm as Victim in

Class Action Lawsuit Filed Against Mutual Benefits Alleged Ponzi Scheme

Aimed at Many Retirees



    COLCHESTER, Conn., July 24 /PRNewswire/ -- Scott + Scott, LLC announces
 that it has filed a class action lawsuit in the United States District Court
 for the Southern District of Florida on behalf of all persons who purchased
 viatical or life settlement contracts or otherwise invested through Mutual
 Benefits Corporation ("MBC" or the "Company") including those investing in MBC
 through Viatical Benefactors, LLC ("VBLLC") during the period from late 1994
 through the present ("Class Period"). A copy of the complaint filed in this
 action is available from the Court, or can be obtained by calling an attorney
 at 619-251-0887 or e-mail nrothstein@scott-scott.com . With two days (2) left
 to sign with the firm, you can contact the firm by e-mailing
 nrothstein@scott-scott.com or nrothstein@aol.com about this matter. You can
 also fax information to 619/296-9770. You can reach a Scott + Scott attorney
 directly at 619/251-0887.
     The complaint alleges that since late 1994, MBC has operated as a viatical
 and life settlement provider, raising money from investors to purchase
 viatical and life settlement contracts. A viatical or life settlement contract
 involves the sale of a life insurance policy by a terminally ill person or
 senior citizen (known within the industry as a "viator") at a price discounted
 from the face value of the policy. Investors pay the premiums, and receive the
 face value of the life insurance policy when the insured, or viator, dies. In
 turn, the viator receives a portion of the proceeds of his life insurance
 policy in a lump sum. On information and belief MBC has allocated investor
 funds to approximately 9,559 life insurance policies with an aggregate
 anticipated death benefit of approximately $1.7 billion. MBC promised
 investors guaranteed fixed rates of return ranging from 12% to 72%, depending
 upon the term of investment chosen by the investor. The life expectancy of the
 viator, as determined by MBC, in turn, determines the total rate of return.
     Scott + Scott, LLC, a Connecticut-based law firm with offices in Ohio and
 California, is a law firm with a national practice and reputation. Scott +
 Scott has dedicated itself to client communication and satisfaction. The firm
 is currently litigating major securities, antitrust and employee retirement
 plan cases throughout the United States and represents pension funds,
 charities, foundations, individuals and other entities worldwide -- in both
 class and non-class cases. Please visit our website at
 http://www.scott-scott.com to learn more about the firm, its practice and
 other cases. If you wish to discuss this action with an attorney or have any
 questions concerning this notice, your rights or any matter within our
 expertise, please contact attorney Neil Rothstein at
 nrothstein@scott-scott.com or by calling 1/619-251-0887. The regular numbers
 are as follows: 1/800-404-7770 (EDT) or 1/800-332-2259 (PDT). You can dial
 direct in California at 1/619-233-4565. Scott + Scott, LLC is located at 108
 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432.
 This release is issued in accordance with the applicable federal law of the
 United States. The firm is presently also litigating matters against Yukos
 Oil, Halliburton, ImClone, Royal Dutch/ Shell Petroleum and more.
     The complaint charges defendants MBC, Viatical Benefactors, LLC ("VBLLC"),
 Viatical Services, Inc. ("VSI"), Kensington Management, Inc. ("Kensington"),
 Rainy Consulting Corp. ("Rainy"), Twin Groves Investments, Inc. ("Twin
 Groves"), P.J.L. Consulting, Inc. ("P.J.L."), SKS Consulting, Inc. ("SKS"),
 Camden Consulting, Inc. ("Camden"), Joel Steinger a/k/a Joel Steiner ("J.
 Steinger"), Leslie Steinger a/k/a Leslie Steiner ("L. Steinger"), Peter
 Lombardi ("Lombardi"), Steven Steinger ("S. Steinger"), Henry Fecker, III
 ("Fecker"), Clark C. Mitchell ("Mitchell"), Edgard Escobar ("Escobar"),
 Anthony LaMarca ("LaMarca"), A.M. Livoti, Jr., P.a. and A.M. Livoti, Jr.
 (collectively "Livoti"), Citibank, N.A. ("Citibank, N.A."), Union Planters,
 N.A. ("Union Planters"); RBC Centura Bank ("RBC"), and First Southern Bank
 ("First Southern") with violations of Sections 12(a)(1), 12(a)(2), and 22(a)
 of the Securities Act of 1933 ("Securities Act"), and Sections 10(b) and 27 of
 the Securities Exchange Act of 1934.
     Specifically, the complaint alleges that since 1994, defendants have
 operated or aided and abetted a billion dollar Ponzi scheme and defrauded at
 least 29,000 investors -- many of whom are retirees -- by issuing a series of
 material and misleading omissions and false statements, breaching escrow
 agreements and breaching their fiduciary trust to investors. The complaint
 alleges that defendants failed to disclose and misrepresented the following
 material adverse facts which were then known to defendants or recklessly
 disregarded by them: (1) that new investor funds were diverted to cover
 shortfalls on the funds escrowed to cover life insurance premiums on policies
 assigned to earlier investors; (2) that there were gross inaccuracies in the
 calculated life expectancies of viators; (3) that insurance premium escrow
 accounts were commingled and deficient; (4) the Steingers' civil disciplinary
 backgrounds as well as $26-plus million in "consulting fees" paid to the
 Steingers or to entities that the Steingers controlled were not disclosed to
 investors; and (5) that MBC does not require that its sales agents be
 licensed, and that several of MBC's sales agents have been the subjects of
 state cease-and-desist orders in connection with the MBC offering.
     On May 5, 2004, the United States Securities & Exchange Commission ("SEC")
 and federal marshals raided MBC's south Florida offices, seized the company's
 records and shut down MBC's operations.
     If you purchased bought viatical or life settlement contracts or otherwise
 invest through MBC and or VBLLC during the period from late 1994 through the
 present, and you wish to serve as lead plaintiff, you must move the Court no
 later than July 27, 2004. The complaint alleges that since late 1994, MBC has
 operated as a viatical and life settlement provider, raising money from
 investors to purchase viatical and life settlement contracts. A viatical or
 life settlement contract involves the sale of a life insurance policy by a
 terminally ill person or senior citizen (known within the industry as a
 "viator") at a price discounted from the face value of the policy. Investors
 pay the premiums, and receive the face value of the life insurance policy when
 the insured, or viator, dies. In turn, the viator receives a portion of the
 proceeds of his life insurance policy in a lump sum. On information and belief
 MBC has allocated investor funds to approximately 9,559 life insurance
 policies with an aggregate anticipated death benefit of approximately $1.7
 billion. MBC promised investors guaranteed fixed rates of return ranging from
 12% to 72%, depending upon the term of investment chosen by the investor. The
 life expectancy of the viator, as determined by MBC, in turn, determines the
 total rate of return.
     The complaint alleges that since late 1994, MBC has operated as a viatical
 and life settlement provider, raising money from investors to purchase
 viatical and life settlement contracts. A viatical or life settlement contract
 involves the sale of a life insurance policy by a terminally ill person or
 senior citizen (known within the industry as a "viator") at a price discounted
 from the face value of the policy. Investors pay the premiums, and receive the
 face value of the life insurance policy when the insured, or viator, dies. In
 turn, the viator receives a portion of the proceeds of his life insurance
 policy in a lump sum. On information and belief MBC has allocated investor
 funds to approximately 9,559 life insurance policies with an aggregate
 anticipated death benefit of approximately $1.7 billion. MBC promised
 investors guaranteed fixed rates of return ranging from 12% to 72%, depending
 upon the term of investment chosen by the investor. The life expectancy of the
 viator, as determined by MBC, in turn, determines the total rate of return.
 
 

SOURCE Scott + Scott, LLC

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.