Last Friday (June 5) in Santa Ana federal court, San Diegan Daniel Christian Stanley Powell was sentenced to more than ten years (121 months) in prison for running what he called a "reverse life insurance" scam.
He told victims that he would use their money to purchase life-insurance policies from insured people. The company would pay the monthly premiums and be the ultimate beneficiaries of the policies, he claimed. Powell trademarked the name "reverse life insurance" and claimed he would take the company public.
Powell told investors he had $1.9 billion in reverse life-insurance policies. But he did not own any, said the U.S. Attorney's office in Santa Ana. Powell also said the money he received would be invested in gold mines. Again, he had no money invested in gold mines.
He stung 60 investors for $5.2 million, and has been ordered by the judge to pay most of it back.