UPDATE: Oct. 10, 2013
RICHMOND, Va. (CBSDC/AP) — The Associated Press has retracted its story on Virginia Democratic gubernatorial candidate Terry McAuliffe lying to investigators in a federal fraud case.
In the indictment, McAuliffe is not identified as the “T.M.” who lied to a federal postal inspector about an alleged death benefits scheme involving an imprisoned estate planner.
Documents in the federal fraud case list McAuliffe among scores of those who invested with a Rhode Island estate planner who profited from death benefits paid on policies issued on terminally ill people without their knowledge.
A 2011 fraud, conspiracy and identity theft indictment alleged Joseph Caramadre and an aide stole terminally ill people’s identities and used them to falsely secure annuities or bonds that paid off when those people died.
Prosecutors produced the list Wednesday in a hearing for Caramadre and the associate, Raymour Radhakrishnan, who each pleaded guilty to wire fraud and conspiracy counts in November.
There is no allegation of wrongdoing by McAuliffe or that he or other investors knew of efforts to defraud the terminally ill.
Campaign spokesman Josh Schwerin said McAuliffe was a passive investor with no knowledge of the actions of Caramadre, “who, at the time, was widely respected by business leaders and elected officials. The allegations are horrible and he never would have invested if he knew he was being deceived.”
The campaign donated $27,000 to the American Cancer Society and Terry McAuliffe personally gave $47,000 to the organization, Schwerin said.
McAuliffe’s name appears on a long list of Caramadre’s investors that prosecutors released during a restitution hearing in U.S. District Court in Providence, R.I., to support their claim that the scam cost insurance companies more than $46 million.
Prosecutors say Caramadre and Radhakrishnan took out variable annuities and so-called “death-put” bonds that would pay out when a person died. Authorities say they lied to terminally ill people to get personal information that was used to purchase bonds and annuities in their names without consent.
The list became public just 27 days before Election Day in the only competitive governor’s race this fall. Recent polling shows McAuliffe has gained a slight lead over Republican Ken Cuccinelli in a contest that had been close.
Cuccinelli’s campaign pounced on the list. Cuccinelli’s chief political adviser, Christopher J. LaCivita, called it “yet another glaring example of Terry McAuliffe doing business with highly dubious individuals.”
The identity of McAuliffe and other investors remained unknown until prosecutors presented Caramadre’s list of clients and investors Wednesday.
The Providence Journal reported Wednesday that other Caramadre investors on the list included the law firm of a former Rhode Island Supreme Court justice, the former police chief of Cranston, R.I., and an officer in charge of planning and financial services for the Roman Catholic Diocese of Providence.
RICHMOND, Va. — Documents in a federal fraud case allege that Virginia Democratic gubernatorial candidate Terry McAuliffe lied to a federal official investigating a Rhode Island estate planner now imprisoned for receiving death benefits on annuities secured on terminally ill people without their knowledge.
A 2011 fraud, conspiracy and identity theft indictment against Joseph Caramadre and an aide, Raymour Radhakrishnan, also alleges that McAuliffe misled a federal postal inspector who was inquiring about a $2,000 check Caramadre had sent him.
McAuliffe’s name surfaced in a long list of Caramadre investors presented in a Wednesday court hearing in Providence, R.I.
McAuliffe’s campaign did not immediately respond to email and phone requests for comment about the allegation.
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