Brothers Indicted, Plead ‘Not-Guilty’ in $13 M Viatical Brokering Scheme

Two Orlando-area brothers, Clarence Keith LaMonda and Jess Lamonda, have been indicted on charges they allegedly conspired to commit mail and wire fraud and tax-related crimes in which they took more than $13 million from investors and insurance companies while brokering life insurance policies for the terminally ill and elderly. They pled not guilty in federal court and were released on bond.

“He’s innocent. We’re going to fight it, and we will go to trial,” attorney Manny Hernandez, who is representing Jesse LaMonda, told the Fort Lauderdale Sun-Sentinel.

The indictment accused the brothers of buying viatical policies on which applicants lied about their health conditions and failed to notify life insurance companies that policyholders had sold their interests to the brothers’ company, Accelerated Benefits Corp. (ABC).

An associate, former attorney John Maynard, also was charged with tax conspiracy for allegedly creating a Bahamas shell company for deposits and transfers, creating a false mortgage deed and other acts to conceal the origin of the invested moneys from the Internal Revenue Service, according to the indictment.

Two others involved with ABC reached plea agreements with the U.S. Attorney’s Office and have cooperated with investigators.