Mutual Benefits Corporation, Steven Steiner, Camden Consulting, Inc., and SKS Consulting, Inc.

Ft. Lauderdale, FL: (Jun-25-07) The US Securities and Exchange Commission filed suit against Ft. Lauderdale-based Mutual Benefits Corporation (MBC), a viatical settlement provider, former MBC vice president Steven Steiner, and two entities he controlled, Camden Consulting, Inc., and SKS Consulting, Inc., alleging that the parties were involved in a fraudulent viatical investment scheme. The suit claimed that the scam defrauded roughly 39,000 investors out of more than $1 billion. The SEC's pursuit of the MBC viatical scheme stretches back to 1998, when a final judgment of permanent injunction was ordered against Steiner's siblings, Joel and Leslie Steinger, the de facto principals of MBC. In May of 2004, the Commission obtained an emergency action to halt MBC's billion-dollar fraudulent offering. The action charged MBC, the Steinger family, and Peter Lombardi, MBC's then-president, with running a fraudulent viatical investment scheme from 1994 through 2004.

In a settlement reached, a Florida District Court judge found the defendants liable for prejudgment interest and disgorgement in the amount of $5,000,000. But it ordered them to pay $3,925,000, based on their financial condition. [CCH WALL STREET: VIATICAL SCAM]

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Published on Jun-29-07