Los Angeles man gets 13 years in Texas fraud case

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Associated Press

Posted on December 19, 2013 at 10:33 AM

Updated Thursday, Dec 19 at 10:33 AM

HOUSTON (AP) — A Los Angeles man has been sentenced to 13 years in prison in a nearly $10 million Texas-based life settlement insurance scam.

A federal judge in Houston on Wednesday sentenced Charles Craig Jordan, who pleaded guilty to conspiracy to commit mail and wire fraud. Jordan was also ordered to pay almost $9.7 million in restitution to more than 500 victims.

Prosecutors say the scheme involved a Houston company called Secure Investment Services and American Settlement Associates. A co-defendant, Kelly Taylor Gipson of Rockwall, awaits sentencing after pleading guilty to conspiracy to launder proceeds from the fraud.

A life settlement is when people who are typically elderly or terminally ill sell their life insurance policies for a cash payment. Investigators say Jordan and Gipson misused investor money and the policies lapsed.

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