Joseph Gennaco Pleads Guilty in Insurance Investment Fraud Case
In a recent article from the Boston Herald, it was revealed that Joseph Gennaco, 68, of Florida, has pleaded guilty to multiple counts of wire fraud and mail fraud in connection to an alleged investment scam that ran from 2001 to 2011. The guilty plea comes as part of a plea deal, and sentencing in the case is set for May 2013.
Gennaco operated under several company names, including Crescent Management Group, GCT Trust, Gennaco & Associates, and Oceanview Financial Services. According to federal prosecutors, Gennaco lied to his investment clients and duped over 20 investors out of a collective $4.5 million dollars.
Prosecutors in the case say that Gennaco falsely told investors that their cash would go into “life settlements” and other insurance-based investments. Unfortunately, prosecutors allege that Gennaco instead used the money brought in from investors to pay his own personal and business expenses.
The guilty plea from Gennaco included 16 counts of mail fraud and 11 counts of wire fraud. If the plea deal is accepted, Gennaco could be facing eight years in federal prison, restitution payments, other fines, and three years of probation.