4 indicted in $1 billion insurance fraud scam

Four men are facing federal charges in a $1 billion Miami life insurance fraud first exposed in 2004.

A 25-count grand jury indictment Monday charges the four played roles in a scam that affected more than 28,000 Mutual Benefits Corp. investors. The company sold investments based on life insurance policies for the elderly, AIDS patients and terminally ill people. The longer a person lives, the less valuable the investment becomes.

Prosecutors say MBC failed to disclose risks, falsified life expectancy figures and mismanaged premium funds.

Federal regulators closed MBC in 2004 and its former president was previously convicted of securities fraud. Those charged in the latest indictment include two former MBC executives and two attorneys.