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Sentencing set in RI for $46M plot targeting dying

Sunday - 12/15/2013, 11:58am  ET

Associated Press

PROVIDENCE, R.I. (AP) -- A prominent lawyer and philanthropist and one of his employees will be sentenced for a $46 million investment fraud that preyed on the dying.

Joseph Caramadre and Raymour Radhakrishnan are scheduled to be sentenced in federal court in Rhode Island on Monday after pleading guilty to wire fraud and conspiracy. Prosecutors say they illegally got personal information from terminally ill people and used it to purchase bonds and annuities that would pay out when a person died.

The strategy drew prominent investors including Terry McAuliffe, now Virginia's governor-elect. There's no evidence he knew anything illegal was going on.

Prosecutors have asked that Caramadre be sentenced to 10 years and Radhakrishnan to eight. Caramadre's lawyers want two years in prison and two in home confinement, while Radhakrishnan has asked to serve one day behind bars.

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