Va. jury convicts Costa Rican man in $670M fraud

April 30, 2012 - 4:55 PM

RICHMOND, Va. (AP) — A federal jury in Virginia has convicted a former Costa Rican insurance executive on all counts in a $670 million fraud scheme.

The jury on Monday found that 60-year-old Minor Vargas Calvo lied to clients and investors about his company's financial strength.

Vargas was president of Provident Capital Indemnity Ltd. Provident sold bonds guaranteeing funding for life settlement companies, which buy life insurance policies from insured people at less than face value and collect the benefits when those people die.

Vargas faced one count of conspiracy and three counts each of mail fraud, wire fraud and money laundering. He is scheduled for sentencing Oct. 23 and could face a maximum of 170 years in prison.