Insurance
agent who defrauded clients dies |
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Lew Perrin McGee, whose fraud
indictment was one of the largest in Lexington's history, died at Jewish
Hospital in Louisville on Thursday after an apparent heart attack. He was 66. |
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The former Lexington insurance
agent had been serving a 20-year prison sentence, but was recently transferred
to a Louisville halfway house, said Lisa Lamb, spokeswoman for the Kentucky
Department of Corrections. |
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McGee was buried yesterday
after graveside services at Lexington Cemetery. |
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In 1998, McGee was indicted on
151 felony counts that included theft by deception, securities fraud and
failure to register securities. |
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Prosecutors said McGee had
taken a total of $3.1 million from 41 investors between 1985 and 1996. |
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The investors, including neighbours
and members of his church, had thought McGee was investing their money,
prosecutors said, but he was using it to expand his insurance business, Perrin
McGee & Co. |
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McGee eventually pleaded guilty
to 16 counts of fraud and securities violations, and received the maximum 20
years in prison. |
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He entered the Marion
Adjustment Centre near Lebanon on April 14, 1998. |
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In January 2002, the parole
board deferred McGee's release for 30 months, Lamb said, which led to his
recent transfer to the St. Ann's Community Service Center in Louisville. |
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He was pronounced dead at 3:42
p.m. Thursday after being rushed to the hospital, she said. The cause of death
has not been determined. |
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McGee's death occurred less
than a month before a July 26 hearing in U.S. Bankruptcy Court that could end
the bankruptcy McGee filed in 1997 and could lead to final payments to his
customers and creditors. |
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"We are one hearing short
of being able to close it out," bankruptcy trustee Robert J. Brown said. |
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If the final payment of $56,761
is approved by the court, customers and creditors who filed more than $3.5
million in claims will have received a total of $340,000 in compensation,
according to court records. |
Records show that 51 bankruptcy
lawsuits resulted from the McGee bankruptcy, which is a big reason the case has
taken so long to complete, Brown said.
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