Florida lawyer gets 10 years for role in massive insurance Ponzi scheme

A South Florida attorney was sentenced to 10 years in prison for his role in an $800 million money laundering and fraud conspiracy against now-defunct insurer Mutual Benefits Corp.

Anthony Livoti Jr., 65, of Fort Lauderdale, was found guilty in the insurance fraud scheme that involved investments in death benefits. His trial ended late last year.

Livoti was an outside counsel for Mutual Benefits Corp. He faced up to 80 years in jail when sentenced by U.S. District Judge Robert Scola in Miami.

More than 10 other executives of the former Fort Lauderdale-based Mutual Benefits Corp. have pleaded guilty to charges and have been sentenced up to 20 years.

Joel Steinger, who headed Mutual Benefits, pleaded guilty before Scola recently. He faces up to 20 years in jail when sentenced in June.

Mutual Benefits sold investments in life insurance policies held by people with chronic illnesses such as AIDS and cancer. The investor would get paid when the original policyholder died, but instead hundreds of people lost about $830 million because of fraud.