Mutual Benefits Viatical Settlement Fraud
December 28, 2006 by Administrator

US Attorney Reports Doctor Pleads Guilty To Role in $956 Million Securities and Health Care Frauds

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), announced today the guilty plea of defendant Clark Mitchell before United States District Judge Paul C. Huck in Miami. Clark Mitchell, a medical doctor once associated with Mutual Benefits Corp. (MBC), pled guilty to securities fraud in connection with his role in a viatical and life settlement scheme in which 28,000 investors lost approximately $956 million, in violation of 15 U.S.C. §§ 78j(b) and 78ff(a), 17 C.F.R. §240.10b-5, 18 U.S.C. § 2. Mitchell also pled guilty to conspiracy to commit health care fraud in connection with his employment at Community Healthcare/CenterOne, Inc (CenterOne), a South Florida AIDS clinic, in violation of 18 U.S.C. §371. Pursuant to the terms of his plea agreement, Mitchell faces a prison sentence of 10 years and a fine of over $5 million. Mitchell also agreed to be responsible for approximately $367 million in restitution payable to MBC investors, and more than $500,000 of restitution for the health care fraud. Sentencing is scheduled for March 7, 2007.

According to the facts admitted by Mitchell, MBC’s principals directed an international network of sales agents and marketing directors who fraudulently induced investors to purchase interests in viatical and life settlements through a series of material misrepresentations concerning the safety and security of the investments. A viatical or life settlement is a transaction in which an investor purchases an interest in a terminally ill or elderly person’s life insurance policy death benefit in return for a lump-sum cash payment. An investor in a viatical or life settlement realizes a profit if, when the insured dies and the policy matures, the policy benefit is greater than the price paid for the policy. The longer an insured lives, the more premium payments must be made to prevent the policy from lapsing and becoming worthless.

MBC’s sales agents and marketing materials falsely led investors to believe that MBC’s policies were safe by claiming that an “independent” state-licensed physician would determine a life expectancy after evaluating the insured’s health condition. Instead, fraudulently low life expectancies figures on thousands of policies were by dictated by MBC’s principals to doctors, including Mitchell. Investors were then sent letters and affidavits which falsely claimed that the doctor completed a review of the insured’s medical condition to determine the life expectancy assigned to the policies. During his association with MBC, Mitchell signed more than 5,000 of these fraudulent letters and affidavits.

MBC also misled investors by promising to escrow enough money to pay for anticipated
insurance premiums. However, given the fraudulently low life expectancies dictated
to Mitchell by MBC’s principals, MBC compensated for insufficient premium reserves
by creating an unsustainable “Ponzi” scheme that used premium funds from recently
sold policies to pay premium obligations on older policies that failed to mature.

In connection with his guilty plea to conspiracy to commit health care fraud, Mitchell also admitted that from 1996 through May 2001, while he served as Medical Director of an AIDS clinic called CenterOne, he and others fraudulently inflated Medicare bills by more than $500,000 by falsely claiming that AIDS patients received more extensive treatments than had actually been provided at the clinic.

Victims/investors may obtain information concerning this case, or submit victim
impact statements concerning this case at www.usdoj.gov/usao/fls/VictimWitness.html.

Mr. Acosta commended the investigative efforts of the FBI and the Southeast Regional
Office of the Securities and Exchange Commission. The matter is being handled by
Assistant United States Attorney Andrew K. Levi and Special Assistant United States
Attorney Ryan Dwight O Quinn.

Source: Press Release

To speak with a Life Settlement Specialist, please call 1-888-973-8377

EMSI Provides Life Expectancy Expertise
December 1, 2006 by Administrator

EMSI Provides Life Expectancy Expertise to Key Industry Organizations

Scottsdale, AZ, November 30, 2006 – Examination Management Services, Inc. (EMSI), a
life settlement service provider, has been asked by two leading organizations in the life insurance industry to provide presentations on life settlement issues.

Vic McMullen, national sales director at EMSI, recently made a presentation on improved mortality experience in the elderly population to Germany’s Bundesverband Verm¶gensanlagen im Zweitmarkt Lebensversicherungen (BVZL), an association of
institutional funding organizations, at their annual meeting on October 26, 2006.
McMullen began his career in life insurance underwriting support services with EMSI in 1993 and has focused on EMSI’s life settlement underwriting services for the past three years.

BVZL has also invited Terry Savage, EMSI’s chief underwriter, to address life expectancy underwriting in a press conference for financial journalists on December 7, 2006. Savage is a 35-year veteran of insurance underwriting and has specialized in life expectancy evaluations for the past 15 years.

Franz-Philippe Przybyl, a spokesman for BVZL and CEO of Berlin Atlantic said, “We are excited about our upcoming press conference and appreciate EMSI coming to Munich
for this event to explain life expectancy underwriting to the involved financial markets.”

Additionally, Dr. Linda S. Goodwin, an EMSI medical director, will provide a presentation to the Life Insurance Settlement Organization (LISA), a non-profit trade association for members of the viatical and life settlement industry, at their annual conference in New York on November 29, 2006. Dr. Goodwin will speak about the differences between life insurance and life settlement underwriting. She is a frequent presenter on a broad range of elderly underwriting topics such as life expectancy, structured settlements and elderly medical conditions. As an active member of the American Academy of Insurance Medicine (AAIM), Dr. Goodwin’s research on mortality of the elderly is frequently published and utilized within the insurance industry for traditional insurance underwriting.

LISA President Ramiro Rencurrell comments, “Accurate mortality assessment of the elderly is one of the critical elements to profitability and competitiveness with life settlement transactions and we appreciate all efforts to further educate all associated parties and appreciate EMSI’s efforts in this regard.”

About EMSI
Examination Management Services Inc. (EMSI) has a 30-year history as a leading provider of medical information, risk management and investigation services to the insurance, legal, clinical and business communities. EMSI delivers customized risk
management solutions through six regional call centers, a national service center in
Irving, TX and a nationwide network with more than 230 branch offices serving 15,000+ cities and rural areas. EMSI is the largest provider of medical record retrieval services and a leading provider of underwriting services, paramedical examination, inspection, teleunderwriting, mortality tracking and claim investigation services. For more information, visit EMSI on the Web at www.emsinet.com.