Investment advisor Joseph Gennaco of Winthrop, Mass., was sentenced in U.S. District Court to more than eight years’ imprisonment and three years of supervised release following a guilty plea in February to 27 counts of mail and wire fraud. He was accused of running a $7 million fraud scheme that involved steering clients into investments of life settlements. He has also been ordered to pay $7 million in restitution to 40 victims.
Gennaco has been in custody in Boston since November 2011 when his bail was revoked in part because he continued to defraud clients even after being charged.
Gennaco ran his scheme under different names from 2001 through 2011, including Gennaco & Associates, Oceanview Financial Services, GCT Trust and Crescent Management Group.
He told customers their money would be invested in insurance-based instruments. Instead, he diverted the funds for his own personal and business purposes.