Judge Gorton, who is handling the case, has scheduled sentencing for May 23, 2013
Joseph Gennaco, 68 of Winthrop, Massachusetts and Juniper, Florida pleased guilty before a U.S. District Judge last month on 11 counts of wire fraud and 16 counts of mail fraud. The conviction comes in connection with Mr. Gennaco’s 10 year scheme centering on investments in “life settlements.” It is believe that he defrauded more than 20 victims of at least $4.5 million.
Had the case proceeded to trial, the Governments would have introduced evidence showing that from 2001 until approximately 2011, Mr. Gennaco defrauded his clients by claiming that the money they invested with him would be invested with various insurance-based instruments, or more specifically “life settlements,” which would ultimately be repaid with a guaranteed profit from the sale of the policies.
In reality, says the Government, Mr. Gennaco simply diverted the funds for his own personal and business needs, allowing the insurance policies to lapse by failing to pay the premiums, and then evading the repayment of his investors when he sold the policies. While engaging in this scheme, Mr. Gennaco operated under a number of different business entitites, including Gennaco & Associates, Oceanview Financial Services, GCT Trust, and Crescent Management Group.
Upon acceptance of the Judge, Mr. Gennaco’s guilty please, made pursuant to a binding plea agreement will require a sentence of between 92 to 100 months, followed by a three-year supervised release, in addition to other fines and restitution to his victims.