|By Chris Mondics, The Philadelphia Inquirer|
|McClatchy-Tribune Information Services|
Kwasnik for years practiced as a lawyer in
If convicted on the
Kwasnik could not be reached for comment Wednesday.
Kwasnik is also the subject of preliminary findings by the
Kwasnik's legal travails began in November of 2011. Then, he was criminally charged with bilking the
Those actions followed a report in The Inquirer detailing allegations by former clients and customers that Kwasnik had misappropriated millions of dollars that they had invested with him.
The lawsuit alleged that
Dow said that investor funds also were used to pay returns to existing investors, the distinguishing characteristic of a Ponzi scheme.
Liberty State Benefits was in the business of life settlements, in which investment firms purchase life insurance policies from policyholders for more than the surrender value, but less than the benefit that is paid when the policyholder dies.
The company's offering documents promised 12 percent returns each year and that the original investment would be returned after three years. A state-appointed fiscal agent concluded in 2011, however, that the company had only
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