-Caveat Lector- Investors Said Taken for $115M By KAREN TESTA .c The Associated Press WEST PALM BEACH, Fla. (AP) - Investment companies that promised lucrative life insurance policies swindled hundreds of people out of $115 million that was spent on lavish lifestyles, according to a federal indictment unsealed Friday. Just $6 million of the $115 million give to the companies was used to buy legitimate policies, court records show. Much of the rest was spent on two dozen homes, 34 cars and two helicopters, the indictment alleged. Frederick Brandau, 54, of Davie; an in-house attorney; a nurse and two of Brandau's companies - Financial Federated Title & Trust Inc. and Asset Security Corp. - were charged with 44 counts of wire and mail fraud, money laundering and conspiracy. The indictment, returned Aug. 13, was unsealed hours after federal agents arrested Brandau at Miami International Airport following his failed attempt to enter Bogota, Colombia, according to the FBI. ``For two years, the defendants preyed upon investors who were naive, unsophisticated and in many instances senior citizens who'd invested their life savings,'' FBI agent Alan Sadowski said. Federal prosecutors planned to write letters to between 5,000 to 6,000 investors who are potential victims of the alleged scheme, which ran from 1996 to August of this year. Many of them may not know they've lost money because they didn't expect to see a return for three years. The investors were told their funds would be used to buy discounted life insurance policies of the terminally ill. In what is known as a viatical settlement, the investor would receive the full value of the policy upon the patient's death. Brandau's lawyer, Thomas Sclafani, did not immediately return a call for comment Friday. However, he's earlier said his client was not running a scam. Federal agents already have begun seizing the homes, automobiles and other items they claim were purchased with funds from investors nationwide. DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance�not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
