In annuity deal tied to McAuliffe, 2 investors knew they bet on specific, dying people

The Washington Post ^ | 10-27-13 | Laura Vozzella

[afraidfortherepublic]

A dying mechanic wanted a few thousand dollars to leave to his wife, two sons and infant daughter. A politically connected millionaire, now running for Virginia governor, wanted to make some money. And a Rhode Island estate planner wanted to become ambassador to the Vatican.

All three came together on paper in late 2006 in a deal struck just two months before the 44-year-old mechanic died of cancer. The mechanic got $5,000. The millionaire, Democrat Terry McAuliffe, made at least $47,000. But the estate planning lawyer, Joseph Caramadre, went to prison instead of Rome.

Caramadre helped McAuliffe place a bet on the dying man based on a loophole the estate planner had sniffed out in the fine print of insurance annuities. Although the loophole was legal, Caramadre has pleaded guilty to stealing the identities of the terminally ill as part of his scheme. He is in federal prison, awaiting sentencing.

There is no indication that McAuliffe or other investors were aware that patients, recruited through hospices and a Catholic newspaper, were sometimes duped into participating. McAuliffe has called himself a “passive investor.”

But at least some investors knew that they were betting on the lives of specific, dying individuals, according to two of them — a former judge and a Hollywood producer.

“There was certainly full disclosure to my law firm when we chose to invest in this,” said Robert G. Flanders Jr., a former Rhode Island Supreme Court justice who, for a time, defended Caramadre in a civil suit that insurers brought against him.

[Gay State Conservative]

Is this what Rush would call a “random act of journalism” from a once great paper that's now on financial life support?

[Viennacon]

Just read the comments. The libt6ards essentially accept that evrything they voted against in Mitt Romney, they are now voting for in Terry. They don’t care that he preyed on the dying. They just don’t want Ken to win.

These people are sick.

[Track9]

You don’t become a Rhode Island Supreme Court justice without letting a lot of corruption go unchallenged. Rhode Island is notorious.

[Perdogg]

ping

[silverleaf]

they are voting for Bill Clinton again, not McCauliffe the Clintons’ sleazy bundler

wth is WRONG with these people? Are they even part of a nation worth defending?

[Shannon]

So the dying mechanic gets $5,000 for his widow, two sons and infant daughter. McAuliffe got at least $47,000. What's wrong with this picture?

Then when Cuccinelli lets the cat out of the bag, McAuliffe donates $74,000 to a charity. Why didn't he give it to the widow of the man he profited off of???

This is revolting. I hope Cuccinelli cleans his clock on election day.

[Orange1998]

1"Someone working for Caramadre went to the mechanic’s house in early November 2006, when he was confined to his bed, rising with assistance only to use the bathroom, the sister said. He signed some papers and got an envelope filled with cash, the sister said".

"The amount was $5,000, the mechanic’s widow said in an affidavit. He died early that January".

Politicians at their finest.

[Pearls Before Swine]

So the dying mechanic gets $5,000 for his widow, two sons and infant daughter. McAuliffe got at least $47,000. What's wrong with this picture?

My problem isn't with the viatical settlement per se, just with how pitifully low it was. I'd be OK with $20K, given reasonable guesses on life expectancy, and so should everyone else.

[SunkenCiv]

Thanks afraidfortherepublic.

A dying mechanic wanted a few thousand dollars to leave to his wife, two sons and infant daughter. A politically connected millionaire, now running for Virginia governor, wanted to make some money. And a Rhode Island estate planner wanted to become ambassador to the Vatican. All three came together on paper in late 2006 in a deal struck just two months before the 44-year-old mechanic died of cancer. The mechanic got $5,000. The millionaire, Democrat Terry McAuliffe, made at least $47,000. But the estate planning lawyer, Joseph Caramadre, went to prison instead of Rome.

[GOPJ]

But at least some investors knew that they were betting on the lives of specific, dying individuals, according to two of them — a former judge and a Hollywood producer.

I remember hearing about scams like this a few years ago... waaaaaay too ghoulish for most people. Not surprise McAuliffe wasn't concerned...

[Liz]

This episode opens a wider window into how McAuliffe came to invest with Caramadre in 2006 who was also a McAuliffe campaign donor — and provides yet another shady example of how the ex-DNC chair, Obama suck-up, and Clinton confidant, has mixed business with politics to profit himself.

Several crucial points;

<><>McAuliffe apparently lied to VA voters---according to the McAuliffe campaign, he invested $33,000 in the Caramadre death fund and received $80,000 back in return, a $47,000 profit. However, documents submitted in Caramadre's trial by federal authorities indicated that McAuliffe's profit was actually $114,000, or $34,000 more than McAuliffe admitted to voters.

<><> According to official RI court records, McAuliffe’s connection to Caramadre came to light via court records linking McAuliffe’s investment directly with the terminally ill, ailing mechanic; official forms identified them as "acquaintances" (apparently a requirement to allow McAuliffe to cash in).

<><> When the irrefutable court records surfaced, McAuliffe’s campaign then said the candidate did not know the mechanic and doesn’t know why they were listed as "acquaintances."

<><> IF OFFICIAL DOCUMENTS WERE FALSIFIED TO PROFIT MCAULIFFE, that would be a felony in any state. .

[Qbert]

"they are voting for Bill Clinton again, not McCauliffe the Clintons’ sleazy bundler. wth is WRONG with these people?"

In all honesty, the Republicans have done nothing- and I mean nothing- to counter BJ Clinton's arguments in the past few years. The Dems make the "War on Women" a key pitch in 2012... and then they have Clinton, a former (?...) sexual harrasser and possible rapist give the keynote speech- the GOP response? Zilch.

Clinton makes a convoluted argument that Obama carries the torch of 90's era prosperity (brought upon almost exclusively by Newt and fellow Conservatives)- the GOP response? Nada.

We don't have Reagan around anymore to make his case, and people often turn to nostalgia in times of distress and uncertainty (like we have now), so many people feel they have nowhere else to turn but their former president, BJ Clinton. The Dems want to win elections (unlike the GOP-e), and will keep doing this. Republicans (and yes, the Tea Party needs to step up here, too), have to counter his arguments directly.