Lake Mary Man Pleads Guilty To Investment Fraud

[nitpicker]

https://www.justice.gov/usao-mdfl/pr/lake-mary-man-pleads-guilty-investment-fraud

Department of Justice
U.S. Attorney’s Office
Middle District of Florida

FOR IMMEDIATE RELEASE
Monday, December 12, 2016

Lake Mary Man Pleads Guilty To Investment Fraud

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Irwin Charles Ager (84, Lake Mary) has pleaded guilty to conspiracy to commit mail fraud and wire fraud. He faces a maximum penalty of 20 years in federal prison. Ager has agreed to pay more than $10.3 million in restitution to his victims. His sentencing hearing has been set for February 17, 2017.

According to court documents, Ager and his conspirators defrauded over 200 victims out of more than $10.3 million through investments offered in connection with a company called Tri-Med Corporation. Ager was one of the Marketing Directors for Tri-Med Associates, the “marketing arm” of Tri-Med. He was responsible for soliciting investors, as well as recruiting and managing many of the sales people who sold investments in Tri-Med.

The investment fraud scheme involved the alleged purchase of medical receivables by Tri-Med related to services provided to accident victims represented by personal injury attorneys. Payment of those medical receivables was supposed to be made from the proceeds of litigation or an insurance claim made against a general liability or automobile insurance policy. Each of the medical receivables was supposed to be secured by a “letter of protection,” provided by a patient’s personal injury attorney to a medical services professional as an incentive to provide services to a patient. A letter of protection is a contract involving a patient, the patient's attorney, and the medical services provider where the patient and attorney agree to pay all or part of the total billed by the medical services provider from the proceeds of any pre-suit settlement, lawsuit settlement, or judgment that the patient may obtain.

To fund Tri-Med’s alleged purchases of medical receivables, Ager and his conspirators solicited individuals to participate in an “investment program” where investors’ money would be used by Tri-Med to buy medical receivables “backed” by letters of protection. As part of their solicitations, Ager and his conspirators represented to investors that that their investments were safe and that investor funds would be held in a trust account that was controlled by an attorney. To assure investors that their investments were secure, Tri-Med claimed that it would transfer its interest in the letter of protection to the investor in a document called an “Assignment of Interest Certificate.”

Those representations were false. Of the more than $17 million raised from over 200 investors, only approximately $2.7 million was ever transferred from Tri-Med to the attorney’s trust account. The majority of the funds raised from investors never made it to that account. Over $6.5 million was paid to the sales people and the operators of Tri-Med or was used by them to benefit themselves or pay business expenses. Approximately $2.3 million was paid as distributions to investors to make them believe that their investments were profitable. In fact, Tri-Med did not purchase enough medical receivables to secure the incoming investments, so it fabricated “Assignment of Interest Certificates.”
(snip)