Nine more suspects indicted in $117 million scam

WEST PALM BEACH, Fla. - Nine more suspects have been indicted in an international $117 million scam that fleeced more than 3,000 people and diverted money intended for the terminally ill, federal prosecutors said.

Five suspects were arrested Friday and a sixth is prepared to surrender Tuesday, his attorney says. Three others also remain at large. Three other suspects and two companies - Financial Federated Title & Trust Inc. and Asset Security Corp. - were previously indicted.

The companies promised investors their money would go to buy life insurance policies of the terminally ill, providing the patients with much-needed cash and the investors with a lucrative opportunity.

Instead, the companies swindled more than $117 million, using the funds to support lavish lifestyles, according to a federal indictment unsealed Friday.

A meager $6 million was used to buy legitimate policies, court records show. Much of the rest was spent on two dozen homes, 34 cars, two helicopters - even a Fort Lauderdale burrito shop, records show.

The people named in the indictment face charges of wire and mail fraud, money laundering, conspiracy and other charges. Also named in the indictment was American Benefits Services Inc.

A grand jury last year indicted Fred Brandau, the president of the Financial Federated and Asset Security, attorney Garland Hogan and nurse Mary Anne Billinghurst.