Life Insurance Blog Area

Life Insurance Ponzi Scheme Criminal Court Case

It doesn't cease to amaze the lengths that people will go to, to make money and live the life style.

Robert Alvin Coberly Jr. and Curtis Devin Somoza, must be pretty intelligent in order to cook up all of these schemes etc. And for the most part, people are dazzled when they see someone with high priced cars, jewellry and houses etc. It's easier to scam people when they see you are "successful".

I find it really curious that these men spent $4.7 million on life insurance pools. My impression is that these funds are used to create or develop a life insurance company or service.

While life insurance is a great business, I would hate to see life insurance clients have to "check out" a life insurance companies credentials before they bought their life insurance policies.

Two Men Nabbed For $68 Million Alleged Ponzi Scam
(CBS) WESTLAKE VILLAGE, Calif. Two Westlake Village men were arrested Tuesday on charges they conned about 70 investors out of more than $68 million in a classic Ponzi scam.

Robert Alvin Coberly Jr. and Curtis Devin Somoza, both 38, are accused in a criminal complaint of misleading investors into believing their money was going to be used to buy pools of life insurance policies that would eventually
yield a five-to-one return -- supposedly with no risk.

Prosecutors say investors were told the life insurance pools were being bought on behalf of the Personal Involvement Center, a church-based group in South Los Angeles.

In reality, just $4.7 million of the more than $68 million the two men allegedly took in was invested in life insurance policy pools, prosecutors contend.

Articles from May 2006
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