Friday, March 7, 2014
HOUSTON (AP) — A second person has been sentenced to prison and must repay nearly $10 million in a Texas-based life settlement investment fraud scheme.
A federal judge in Houston on Thursday sentenced Kelly Taylor Gipson of Rockwall to four years in prison and ordered payment of restitution. Prosecutors say Gipson and Charles Craig Jordan of Los Angeles misused investor funds and the policies lapsed.
Jordan, who formerly lived in Texas, pleaded guilty to conspiracy to commit mail and wire fraud and in December was sentenced to 13 years in prison. Gipson pleaded guilty to conspiring to launder proceeds from the scheme linked to a Houston firm.
A life settlement is when people who are typically elderly or terminally ill sell their life insurance policies for a cash payment.