Log In or Register
HomeLocal NewsState NewsSportsOpinionObituariesAgriculture
Quick Links
  Home
  My Bulletin
  Contact The Bulletin

Marketplace
  Display Ads
  Classifieds
  Dir. of Advertisers

Opinion

Mail: Try the voter's website

Mail: Thanks Allo

More opinion

Ag News

Results of 4S Goat Expo in North Platte

Drought-stricken ranchers, farmers get more time to replace livestock

More Ag News


Email Article | Print Article
News - State/Regional News
 
Sentences set for Grand Island investment swindlersTell North Platte what you think
 

Sentences were handed down Wednesday for three central Nebraska people who swindled nearly 200 victims in a $16 million investment scheme.

NebraskaLand National BankYou've got a
facebook Request!
CLICK HERE!

The case involved the now-defunct First Americans Insurance Services company of Grand Island.

Stella Levea, 55, and James Masat, 67, of Grand Island were both sentenced to 97 months in prison and Kenneth Mottin, 56, of St. Libory received a sentence of 5 years from United States Senior District Judge Richard G. Kopf.

In addition, they are jointly and severally liable to pay restitution to the 192 victims in the amount of $16,607,263.85.

All three were convicted of mail fraud.

According to U.S. Attorney Deb Gilg, First Americans Insurance Services operated in Grand Island. From 2003-08 and previously, FAIS raised funds, in part by borrowing from private individuals.

Gilg said the lenders were told that a portion of the loaned money would be used to buy collateral in the form of an annuity which would grow in value, thereby insuring the lender would be able to recoup at least the principal loaned to FAIS. However, the defendants failed to purchase annuities as promised, using the money instead for other business and personal purposes.

In total, the defendants borrowed more than $27 million from private individuals with promises to secure those loans with an annuity. Some repayments were made, resulting in the restitution order for $16.6 million, Gilg said.

On Aug. 17, 2007, Masat and Levea on behalf of FAIS agreed to a Department of Banking prohibition on borrowing of ‘new money’ from private lenders.

However, between Aug. 17, 2007 and Jan. 12, 2009, while prohibited from borrowing by the Department of Banking moratorium, FAIS continued to borrow an additional $31.68 million in ‘new money’ loans from private lenders.

Gilg said FAIS filed for bankruptcy on Jan. 12, 2009 and no longer operates.

This case was investigated by the Federal Bureau of Investigation, the Nebraska State Patrol, the Nebraska Department of Banking and the Nebraska Department of Insurance.


Like this story to send to your facebook

The North Platte Bulletin - Published 10/18/2012
Copyright © 2012 northplattebulletin.com - All rights reserved.
Flatrock Publishing, Inc. - 1300 E 4th St., Suite F - North Platte, NE 69101
 
Hide Talk Back
 
 
Login to post Talk Back
Close


Click on the cop Report Talk Back Abuse to report Talk Back abuse and misuse
 
 
 

Copyright © 2003 - 2014 northplattebulletin.com
All rights reserved.

Flatrock Publishing, Inc.
1300 E 4th St., Suite F
North Platte, NE 69101

 
Your Ip Address - 54.225.57.156
North Platte, Nebraska