UPDATE: McAuliffe listed as investor in company facing fraud investigation, not indicted in case
Updated On: Oct 09 2013 02:55:09 PM CDT
Virginia's Democratic candidate for governor is listed in documents in a federal fraud case among dozens of those who invested with a Rhode Island estate planner who is believed to have profited from death benefits paid on policies issued to terminally ill people without their knowledge.
A 2011 fraud, conspiracy and identity theft indictment alleges Joseph Caramadre and an aide stole terminally ill people's identities and used them to falsely secure bonds, which paid off when those people died.
There is no evidence Terry McAuliffe or other investors knew of efforts to defraud the terminally ill. Prior reports, which have since been corrected, falsely accused McAuliffe of being indicted for lying to federal investigators in defense of Caramadre.
McAuliffe's campaign says he was a passive investor with no knowledge of his activities.
Prosecutors produced the list of investors Wednesday during a hearing for Caramadre and an associate who pleaded guilty to wire fraud and conspiracy counts in November.
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