
Caramadre pleaded guilty last year for his part and went to prison. The scheme involves "death put bonds," and it worked like this: Caramadre posted an advertisement in a Catholic newspaper offering $2,000 in cash to the terminally ill, which many understandably took as an offer of Christian charity. Caramadre and his associates met with them to run a slick and smooth spiel, obtaining enough personal information to open dozens of joint brokerage accounts in the victims' names, either duping them into signing the paperwork or forging their signatures.
The beauty part for the crooks is that through a quirk of the law, the "co-owner" of certain types of bonds are allowed to cash them at full value before the maturity date if the other "co-owner" dies. Caramadre and his associates poured money into the bonds. At the death of their clients, they cashed the bonds, which returned more than $10 million to them. Mr. McAuliffe was one of those making a handsome return on his investment. Mr. McAuliffe further received campaign donations of $26,599 from Caramadre.
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