'Death put' lawyer pleads guilty to fraud charge

Caramadre bought bonds, VAs using identities gleaned from the terminally ill

Nov 25, 2012 @ 12:01 am

By Darla Mercado

A Rhode Island lawyer who used variable annuities to help investors profit from the deaths of gravely ill people pleaded guilty to federal fraud charges last Monday.

Joseph Caramadre, an estate- planning lawyer based in Cranston, R.I., and his associate, Raymour Radhakrishnan, admitted in the U.S. District Court in Rhode Island that they had committed wire fraud and conspiracy.

In exchange for the pleas, the U.S. Attorney's Office will recommend that the court give the two men prison terms of no longer than 10 years. Each faced a maximum sentence of 25 years in prison and $500,000 in fines.

From 1995 through 2010, Mr. Caramadre created a strategy for investors that involved using variable annuities and naming a terminally ill person as the annuitant. Once that person died, the investor received the death benefits, as well as a guaranteed return of the principal and other enhancements.

INSURERS INVOLVED

Carriers involved included Metropolitan Life Insurance Co., Transamerica Life Insurance Co. and Western Reserve Life Insurance Co.

“Mr. Caramadre made a decision to accept the plea agreement because it was in his best interests and the best interests of his family,” said Mr. Caramadre's attorneys, Anthony M. Traini and Michael Lepizzera, in a statement.

Mr. Radhakrishnan's attorney, Olin Thompson, declined to comment.

Mr. Caramadre and Mr. Radhakrishnan are scheduled to be sentenced in February, but they still face a slew of civil lawsuits. The Securities and Exchange Commission, Transamerica and Western Reserve Life have cases pending against the two men.

dmercado@investmentnews.com Twitter: @darla_mercado

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

When can advisers expect an SEC fiduciary rule proposal and other regs this year?

Managing editor Christina Nelson and senior reporter Mark Schoeff Jr. discuss regulations of consequence to financial advisers in 2018, and their likely timing.

Recommended Video

Path to growth

Latest news & opinion

Cutting through the red tape of adviser regulation is tricky

Don't expect a simple rollback of rules under the Trump administration in 2018 — instead, regulators are on pace to bolster financial adviser oversight.

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

Morgan Stanley reports a loss of advisers after exiting the protocol for broker recruiting

The firm said it lost 47 brokers in the fourth quarter, the most in any quarter of 2017.

Morgan Stanley's wealth management fees climb to all-time high

Improvement reflect firm's shift of more clients into fee-based accounts priced on asset levels, which boosts results as markets rise.

Legislation would make it harder for investors to sue mutual funds over high fees

A plaintiff would have to state in their initial complaint why fiduciary duty was breached, and then prove the violation with 'clear and convincing evidence.'

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print