BOSTON (AP) — A Winthrop man authorities say defrauded 20 people of at least $4.5 million over a 10-year period has pleaded guilty to multiple counts of mail and wire fraud.
Federal prosecutors say 68-year-old Joseph Gennaco told investors their money would be invested in life insurance policies — or ‘‘life settlements’’ — and the investments would be repaid with a guaranteed profit from the sale of those policies. Instead, Gennaco diverted the money for his own personal and business uses, allowed insurance policies to lapse by failing to pay the premiums, and failed to repay investors when he sold the policies.
The scheme occurred from 2001 until 2011.
Gennaco is scheduled to be sentenced May 23. He faces more than eight years in prison, three years of probation, fines and restitution.