Tue, 05 Jan 2010 11:21:54 GMT — A 63-year-old South Carolina man has admitted stealing more than $2.5 million from at least 35 people in a Ponzi scheme. The Herald of Rock Hill reports that former Rock Hill insurance agent and investment broker Gene Sullivan pleaded guilty in federal court Monday to mail fraud. He faces up to 20 years in prison when sentenced April 7. Assistant U.S. Attorney Nathan Williams said most of the victims were widows or the children of deceased clients, who had come to collect life insurance payments. The scam dated to at least 1995. Documents show Sullivan spent money on cars, a house, his children's education and at least one wedding.
Williams said the scam unraveled after a daughter of an elderly woman complained to New York Life in late 2008.