ABC Viaticals, et al.

On November 17, 2006, the SEC obtained a temporary restraining order, asset freeze and other relief against C. Keith LaMonda and his brother Jesse, and ABC Viaticals, Inc.  According to the complaint, the defendants fraudulently raised at least $100 million from over 4,100 investors worldwide by offering fractional interests in life insurance policies, guaranteeing returns from 27% to 150%.

Among other things, the SEC alleged that the defendants falsely claimed that an independent escrow agent controlled investor funds and that funds to pay insurance premiums for the duration of the investment were segregated at the time policies were purchased.  During the course of the scheme, the LaMondas fraudulently transferred at least $6.5 million of investor funds to entities they controlled.  The LaMondas are currently on trial for mail and wire fraud and income tax evasion in federal district court in Florida. 

The Court also appointed Michael J. Quilling as Receiver.  For the latest information about the Receivership, you can visit the Receiver’s website.

http://www.sec.gov/divisions/enforce/claims/abcviaticals.htm