User Rating: 4 / 5
Stephen Ziegler was the primary securities regulatory counsel for Mutual Benefits Corp., the largest life settlements company in the United States, until it was shut down, due to it being a massive Ponzi scheme. Ziegler, who was aware of MBCs misuse of investor funds, helped conceal the fraud, falsified documents in connection with the purchase and assignment of group insurance policies, and filed false reports with state regulators.
The lawyer was sentenced to five years imprisonment, for conspiracy to commit securities fraud, which was later reduced by the Court. He was also ordered, together with his co-conspirators, to pay Restitution, in the amount of $ 826,839,642, which was, at that time, the Government's calculation of investor losses, which was later reduced to a Criminal Restitution Judgment Lien.
After serving his sentence, Ziegler paid a total of $194,105.99 towards the lien, but thereafter failed or refused to pay any additional amount, and the US Attorney filed a Complaint* to Foreclose his Hollywood, Florida home, on July 27, 2016. he and his wife will now probably lose their residence.
Lawyers who learn that a client is engaging in a Ponzi scheme, and who do not immediately withdraw from representing that client, but continue to advise him, run the risk of being ordered to make restitution of the losses, along with all the other co-conspirators. In this case, it was found that the attorney was an active participant, but whenever one discovers a Ponzi scheme, it is vital to disengage forthwith, and seek the advice of a qualified attorney, to have your situation thoroughly assessed. You may wish to report the Ponzi, and possibly seek immunity from prosecution.
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*United States of America vs. Stephen Ziegler, et al, Case No.16-cv-61795-BB (SD FL).
The lawyer was sentenced to five years imprisonment, for conspiracy to commit securities fraud, which was later reduced by the Court. He was also ordered, together with his co-conspirators, to pay Restitution, in the amount of $ 826,839,642, which was, at that time, the Government's calculation of investor losses, which was later reduced to a Criminal Restitution Judgment Lien.
After serving his sentence, Ziegler paid a total of $194,105.99 towards the lien, but thereafter failed or refused to pay any additional amount, and the US Attorney filed a Complaint* to Foreclose his Hollywood, Florida home, on July 27, 2016. he and his wife will now probably lose their residence.
Lawyers who learn that a client is engaging in a Ponzi scheme, and who do not immediately withdraw from representing that client, but continue to advise him, run the risk of being ordered to make restitution of the losses, along with all the other co-conspirators. In this case, it was found that the attorney was an active participant, but whenever one discovers a Ponzi scheme, it is vital to disengage forthwith, and seek the advice of a qualified attorney, to have your situation thoroughly assessed. You may wish to report the Ponzi, and possibly seek immunity from prosecution.
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*United States of America vs. Stephen Ziegler, et al, Case No.16-cv-61795-BB (SD FL).
