Massachusetts insurance adviser gets over eight years for taking $7 million meant for life settlements
Joseph Gennaco, a 68-year-old insurance adviser from Winthrop, Massachusetts, pleaded guilty in February to 27 counts of mail and wire fraud for defrauding 40 people out of $7 million. The Associated Press reported in August 2013 that he was sentenced to more than eight years in federal prison and three years of probation and ordered to pay full restitution. The scheme ran from 2001 until 2011.
- Year
- 2013
- Where
- United States
- Outcome
- Sentenced
- Reported loss
- $7.0 million
- Victims
- 40
- Schemes
- Life settlement fraud
- Last reviewed
- 2026-10-28
The facts, as recorded
- Gennaco told investors their money would be invested in life insurance policies, or life settlements, and that the investments would be repaid with a guaranteed profit from the sale of the policies.
- According to prosecutors, instead of doing so he diverted the money for his own personal use, allowed insurance policies to lapse by failing to pay the premiums, and failed to repay investors when he sold the policies.
- He pleaded guilty to 27 counts of mail and wire fraud, was sentenced to more than eight years in federal prison and three years of probation and was ordered to pay full restitution.
- He defrauded 40 people out of $7 million, and the scheme occurred from 2001 until 2011.
Why this case matters
It is a small, one-person version of the same product. There is no fund, bond or marketing network in the Associated Press account: an insurance adviser told 40 people their money would be invested in life settlements. Prosecutors said he used it for himself, let policies lapse by not paying the premiums, and did not repay investors when he sold the policies.
The caveat
Gennaco pleaded guilty and has been sentenced, so the conduct above is what prosecutors said, as reported by the Associated Press. The article gives no date in its text; its page metadata carries August 14, 2013, and the report says he was sentenced “Tuesday”, so this page gives only the year 2013. The report says he pleaded guilty “in February” without giving the year. It does not say how he found his investors or what became of the policies.
Sources
- Winthrop man sentenced to 8 years on fraud charges. Boston 25 News, from the Associated Press. Accessed 2026-10-28. Supports: Every fact above: Gennaco's age and town, the 40 people and $7 million, the 27 counts, the sentence and probation, the restitution order, how investors were told the money would be used, the diversion, the lapsed policies and the 2001 to 2011 period.