Business Crimes Hotline

That is the amount the life insurer has agreed to pay to settle Florida and Illinois class actions accusing it of violating the Telephone Consumer Protection Act, a measure that outlaws the sending of faxes lacking prominently placed instructions for opting-out of such communications.

MetLife and Scott Storick, its former salesman, deny wrongdoing. The insurer, which said it fired Storick when it learned about the 2010 to 2012 fax onslaught, said it agreed to resolve the suits ' C-Mart Inc. v. Metropolitan Life in U.S. District Court for the Southern District of Florida, and Fauley v. MetLife in Illinois's Circuit Court for the 19th Judicial District ' to avoid the risks and uncertainties of trial.

The Aug. 7 settlements could mean between $50 and $3,500 for businesses and homes that received the faxes, which read: “Low Cost Life-Insurance Rates!” About $7.7 million of the settlement pot is earmarked for plaintiffs' attorneys.

According to court documents, Storick paid a fax-blasting firm to spew thousands of the messages a day nationwide. His goal was to generate leads and maintain his standing as one of MetLife's leading salesmen, as well as his membership in the selective Million Dollar Round Table, comprising top life insurance and financial services professionals from 74 countries, the documents show. ' Lisa Hoffman , law.com.

IDAHO

Investment Promoter Settles Security Suit

Bonneville County District Court in Idaho has issued a permanent injunction against Idaho Falls investment promoter Tony Sellers, who was sued by the Idaho Department of Finance in March over alleged violations of the state's Uniform Securities Act.

According to a statement from the Department of Finance, Sellers sold $4.6 million in charitable gift annuities to 24 elderly investors. According to the state, these securities were not registered, and Sellers was not licensed to sell them. Sellers also made misrepresentations and failed to disclose material information in conjunction with the security sales, the state says.

The charitable gift annuities were issued by an organization known as We The People, which is the subject of a federal civil enforcement action brought by the Securities and Exchange Commission (SEC). All of the group's assets have been turned over to a court-appointed receiver, and the Idaho Department of Finance said that it anticipates Idaho investors will have some of their investment returned.

Sellers consented to the judgment, which included a $20,000 penalty for his part in the offer and sale of the We The People CGAs. He also agreed to cease offering or selling financial products other than insurance products that are offered by insurance companies registered or licensed with the Department of Finance in Idaho.

TEXAS

'Pay to Play' Public Contracting Scheme

The former mayor of Progreso, TX, and three others, including his brother and his father, have been sentenced for their roles in a “pay-to-play” public contracting scheme that involved the local school board, the Brownsville Herald reports.

U.S. District Judge David Hittner handed the stiffest sentence down to the father, Jose Vela, 65, jailing him for 10 years for bribery concerning federally funded programs, adding an additional 31 months for conspiracy. Vela was also ordered to forfeit $300,000 and to pay a $10,000 fine, according to an FBI news release.

Former Progreso Mayor Omar Vela, 36, was sentenced to 10 years and one month in federal prison and his brother, Michael Vela, 30, the former President of the Progreso Independent School District Board of Trustees, will serve less than six years. They were also ordered to forfeit $314,000 and $300,000 respectively.

The three Vela men all pleaded guilty to conspiracy and bribery concerning programs receiving federal funds. A fourth man, Jesus Bustos, 58, pleaded guilty to conspiracy. At press time, he was due to be sentenced on Aug. 27. In a separate but related case, a third Vela brother, Orlando, 34, was convicted of theft from a program receiving federal funds. He was ordered to pay $12,874.42 in restitution and will spend 10 months in prison.

According to the FBI, from 2004 through 2013 the U.S. Department of Education issued more than $1 million per year in grants and funds to the school district. Contractors who wanted to obtain contracts from the school district or the City of Progreso were required to pay bribes. The Velas' political control over both the city and the school board allowed them to extract these bribes.

Jose Vela, who was PISD's director of maintenance and transportation at the time, controlled the school board by handing out bribe money to board members who voted as he directed, thereby ensuring that contracts were awarded to those willing to pay him bribes and kickbacks. Omar and Michael Vela had a level of control over local government, and also assisted in the scheme by gathering bribe payments and delivering them to their father, out of which they would also be given a cut, according to the FBI. The Velas extracted more than $300,000 in bribe payments overall.

Orlando Vela admitted stealing almost $13,000 from the school district through fraudulent invoices. The payments were approved by the school district's business manager ' Orlando Vela's wife, Ana Vela, the Brownsville Herald reports.

All four Velas were taken into custody following sentencing, where they will remain until they are transferred to a prison which has not yet been determined. ' law.com

'

FLORIDA, ILLINOIS

MetLife Salesman Blasts Junk Faxes

MetLife Inc. will be out $23 million because one of its former top salesmen allegedly violated federal law by blasting junk faxes to as many as 2.8 million recipients in an effort to drum up more business.

That is the amount the life insurer has agreed to pay to settle Florida and Illinois class actions accusing it of violating the Telephone Consumer Protection Act, a measure that outlaws the sending of faxes lacking prominently placed instructions for opting-out of such communications.

MetLife and Scott Storick, its former salesman, deny wrongdoing. The insurer, which said it fired Storick when it learned about the 2010 to 2012 fax onslaught, said it agreed to resolve the suits ' C-Mart Inc. v. Metropolitan Life in U.S. District Court for the Southern District of Florida, and Fauley v. MetLife in Illinois's Circuit Court for the 19th Judicial District ' to avoid the risks and uncertainties of trial.

The Aug. 7 settlements could mean between $50 and $3,500 for businesses and homes that received the faxes, which read: “Low Cost Life-Insurance Rates!” About $7.7 million of the settlement pot is earmarked for plaintiffs' attorneys.

According to court documents, Storick paid a fax-blasting firm to spew thousands of the messages a day nationwide. His goal was to generate leads and maintain his standing as one of MetLife's leading salesmen, as well as his membership in the selective Million Dollar Round Table, comprising top life insurance and financial services professionals from 74 countries, the documents show. ' Lisa Hoffman , law.com.

IDAHO

Investment Promoter Settles Security Suit

Bonneville County District Court in Idaho has issued a permanent injunction against Idaho Falls investment promoter Tony Sellers, who was sued by the Idaho Department of Finance in March over alleged violations of the state's Uniform Securities Act.

According to a statement from the Department of Finance, Sellers sold $4.6 million in charitable gift annuities to 24 elderly investors. According to the state, these securities were not registered, and Sellers was not licensed to sell them. Sellers also made misrepresentations and failed to disclose material information in conjunction with the security sales, the state says.

The charitable gift annuities were issued by an organization known as We The People, which is the subject of a federal civil enforcement action brought by the Securities and Exchange Commission (SEC). All of the group's assets have been turned over to a court-appointed receiver, and the Idaho Department of Finance said that it anticipates Idaho investors will have some of their investment returned.

Sellers consented to the judgment, which included a $20,000 penalty for his part in the offer and sale of the We The People CGAs. He also agreed to cease offering or selling financial products other than insurance products that are offered by insurance companies registered or licensed with the Department of Finance in Idaho.

TEXAS

'Pay to Play' Public Contracting Scheme

The former mayor of Progreso, TX, and three others, including his brother and his father, have been sentenced for their roles in a “pay-to-play” public contracting scheme that involved the local school board, the Brownsville Herald reports.

U.S. District Judge David Hittner handed the stiffest sentence down to the father, Jose Vela, 65, jailing him for 10 years for bribery concerning federally funded programs, adding an additional 31 months for conspiracy. Vela was also ordered to forfeit $300,000 and to pay a $10,000 fine, according to an FBI news release.

Former Progreso Mayor Omar Vela, 36, was sentenced to 10 years and one month in federal prison and his brother, Michael Vela, 30, the former President of the Progreso Independent School District Board of Trustees, will serve less than six years. They were also ordered to forfeit $314,000 and $300,000 respectively.

The three Vela men all pleaded guilty to conspiracy and bribery concerning programs receiving federal funds. A fourth man, Jesus Bustos, 58, pleaded guilty to conspiracy. At press time, he was due to be sentenced on Aug. 27. In a separate but related case, a third Vela brother, Orlando, 34, was convicted of theft from a program receiving federal funds. He was ordered to pay $12,874.42 in restitution and will spend 10 months in prison.

According to the FBI, from 2004 through 2013 the U.S. Department of Education issued more than $1 million per year in grants and funds to the school district. Contractors who wanted to obtain contracts from the school district or the City of Progreso were required to pay bribes. The Velas' political control over both the city and the school board allowed them to extract these bribes.

Jose Vela, who was PISD's director of maintenance and transportation at the time, controlled the school board by handing out bribe money to board members who voted as he directed, thereby ensuring that contracts were awarded to those willing to pay him bribes and kickbacks. Omar and Michael Vela had a level of control over local government, and also assisted in the scheme by gathering bribe payments and delivering them to their father, out of which they would also be given a cut, according to the FBI. The Velas extracted more than $300,000 in bribe payments overall.

Orlando Vela admitted stealing almost $13,000 from the school district through fraudulent invoices. The payments were approved by the school district's business manager ' Orlando Vela's wife, Ana Vela, the Brownsville Herald reports.

All four Velas were taken into custody following sentencing, where they will remain until they are transferred to a prison which has not yet been determined. ' law.com

'