WPRO News and the Associated Press
PROVIDENCE, R.I. (AP) — A federal appeals court has let stand the conviction of a man who ran a $46 million investment scheme that targeted the terminally ill, with the court calling it “one of the most avaricious frauds in Rhode Island history.”
Joseph Caramadre was sentenced to six years in prison and ordered to pay $46 million in restitution after pleading guilty. He later tried to withdraw his guilty plea and challenged the restitution order.
The 1st U.S. Circuit Court of Appeals on Monday denied him.
Caramadre took out bonds and annuities with personal information of terminally ill people, then collected when they died.
Among investors were Terry McAuliffe, now governor of Virginia, and U.S. Rep. Jim Langevin. There was no evidence they knew it was illegal. Both later donated the money to charity.
