PROVIDENCE – U.S. Rep. James R. Langevin said he unwittingly made a profit on an investment scheme that preyed on terminally ill people and that he has since donated the money to charity, The Associated Press reported last week.
WJAR-TV first reported the investment on Oct. 14. In an interview with the station, Langevin acknowledged his involvement with Joseph Caramadre’s scheme.
In a statement, the Democrat said he loaned money in 2007 to a relative, whom he did not identify, to help fund an investment the relative planned to make with Caramadre.
According to the AP, Caramadre pleaded guilty in November to one count each of wire fraud and conspiracy. Prosecutors say Caramadre and his employee, Raymour Radhakrishnan, took out variable annuities and so-called death-put bonds that would pay out when a person died. Authorities say they lied to terminally ill people to get personal information that was used to purchase bonds and annuities in their names without consent.
The AP said there is no evidence that investors knew about efforts to defraud the terminally ill. •