San Diego Man Convicted Of Life Insurance Scam
SANTA ANA, Calif. (AP) — A San Diego man who ran a life insurance scam that cost victims $4 million has been convicted of federal charges.
Daniel Powell was convicted Monday of mail and wire fraud and obstruction of justice.
Prosecutors say Powell's company promised to invest in "reverse life insurance" policies — that is, investors' money would be used to buy up life insurance policies.
The company was supposed to make money by selling the policies or collecting on them when the insured people died.
Authorities say Powell also told some victims the money would be invested in gold mines.
In fact, it was used to pay back some investors, promote the business and pay for Powell's fancy apartment and luxury cars.
Authorities say around 50 people around the country were bilked.
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