Important note: Information in this article was accurate in 2005. The state of the art may have changed since the publication date.
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Miami Herald - April 15, 2005
Gregg Fields, gfields@herald.com
At a hearing this morning before U.S. District Judge Federico Moreno, Curtis Minor, acting on behalf of company receiver Roberto Martinez, said it appeared a claims adjuster needed to be hired to handle the 1,925 investors entitled to the money.
Fort Lauderdale-based Mutual Benefits offered viatical programs, where investors purchased a terminally ill person's life insurance at a discount. Most of the policies were bought from HIV-positive people. The company was shut down last May by regulators, who accused it of being a Ponzi scheme.
Moreno later ruled that $105 million being held in escrow by Mutual Benefits should be returned to investors.
However, Tom Tew, representing some of the smaller investors in Mutual Benefits, argued that a claims adjuster was an unnecessary expense. He said an outside auditor and Regions Bank, where the bulk of the money is kept, could handle it inexpensively.
Jacqueline Becerra, representing Regions Bank, said one obstacle was that the bank could effectively only write about 15 checks a day -- a number that flabbergasted the judge.
"What do they have? Writing instruments from the medieval ages?" Moreno asked.
Moreno asked the interested parties to draw up proposals -- preferably in agreement -- and submit them by April 29. He plans to rule within a week after that.
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