Small Vargas Calvo, 60, is President of its capital indemnity Ltd. understand sold bonds that guarantee funds for the life settlement company, which purchased life insurance policies from people who are insured at less than face value and collect benefits when people die.

The Government initially claimed Provident sold $ 670 million in bonds on the basis of fraudulent financial reports, but accounting done by the Internal Revenue Service investigators verified only $ 485 million. According to prosecutors, Vargas not only misunderstood assets the company but also lied when he told clients, investors and regulators that are covered by the Provident reinsurance agreements with big companies.

After a five-day trial, the jury deliberated about three hours before finding one count, Vargas guilty of conspiracy and three counts each of mail fraud, wire fraud and money laundering. Vargas, who stood stoically as the verdict was read, is scheduled for October 23 sentencing and could face a maximum of 170 years in prison.

“We are very disappointed, obviously,” defense lawyer Jeffrey Everhart said outside the courtroom. “It is a case which is quite complex, and there are plenty of clear evidence is not good for us.”