Prosecutors: Fraudster scammed while awaiting trial

FORT LAUDERDALE, Fla. - Alleged Fort Lauderdale ponzi schemer Joel Steinger is awaiting trial on what federal prosecutors say is one of the biggest frauds in Florida history, but they say that didn't stop him from committing a whole new scam while out of prison on a $5 million bond.

Steinger was indicted in Miami federal court today on wire fraud charges alleging he used bogus companies to get health insurance, bilking Blue Cross Blue Shield and other insurers out of some $3 million.

Also charged was his brother, Steven Steinger, and his brother's partner, Henry Fecker.

Steinger was awaiting trial in an alleged billion-dollar fraud involving his former viatical company, Mutual Benefits Corporation. He's accused of taking hundreds of investors' money in a scam involving AIDS patients' insurance policies.

Federal prosecutors are now asking a judge to revoke the bond of Steinger, who has been allowed to live in his $3.5 million mansion while awaiting trial.

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