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McAuliffe on Investors List in RI Benefits Case - NBC29 WVIR Charlottesville, VA News, Sports and Weather

McAuliffe on Investors List in RI Benefits Case

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By BOB LEWIS
AP Political Writer

RICHMOND, Va. (AP) - Documents in a federal fraud case list Virginia Democratic gubernatorial nominee Terry McAuliffe among scores of those who invested with a Rhode Island estate planner who allegedly profited from death benefits paid on policies issued on terminally ill people without their knowledge.

A 2011 fraud, conspiracy and identity theft indictment alleges Joseph Caramadre and an aide stole terminally ill people's identities and used them to falsely secure annuities or bonds that paid off when those people died.

Prosecutors produced the list Wednesday in a hearing for Caramadre and an associate who pleaded guilty to wire fraud and conspiracy counts in November.

There is no evidence that McAuliffe or other investors knew of efforts to defraud the terminally ill.

McAuliffe's campaign said he was a passive investor with no knowledge of Caramadre's activities.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Note: In a previous article carried by many media outlets, including NBC29, the Associated Press had incorrectly reported that according to an indictment, McAuliffe had lied to a federal official investigating a death benefits scheme. The Associated Press has withdrawn that story. The indictment did not identify McAuliffe as the "T.M." who allegedly lied to investigators.

McAuliffe's campaign released the following statement to NBCWashington Wednesday:

"Terry was one of hundreds of passive investors several years ago and had no idea about the allegations against the defendant - who, at the time, was widely respected by business leaders and elected officials. The allegations are horrible and he never would have invested if he knew he was being deceived. The McAuliffe Campaign has donated $27,000 to the American Cancer Society and Terry McAuliffe has donated $47,000 to the American Cancer Society. As part of its work, the American Cancer Society provides support, transportation, and care to those suffering with illness at all stages of their life."

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