Lawyer told to pay $46M for exploiting the dying

AP News
Posted: Feb 03, 2014 12:06 PM

PROVIDENCE, R.I. (AP) — A federal judge in Rhode Island has ordered a lawyer to repay $46 million to companies that lost money in a scheme that exploited dying people.

U.S. District Judge William Smith on Monday said Joseph Caramadre (kah-rah-MAH'-dray) must reimburse companies that paid out bonds and annuities when terminally ill people died. Caramadre was sentenced last year to six years in prison after pleading guilty to wire fraud and conspiracy. He later unsuccessfully tried to take back his plea, saying he lied to plead guilty.

Caramadre and ex-employee Raymour Radhakrishnan (RAY'-mohr rad-ah-KRISH'-nan) paid terminally ill people cash, passing it off as charity, then used their personal information to purchase bonds and annuities that would pay out when the person died.

The judge ordered Radhakrishnan to be jointly responsible for $33 million of the amount.