Securities and Investments American Benefit Consultants David A. Cawthon Bruce D. Forrester GFI Financial Keith V. Harned Hypico, Inc. Keyes International Insurance Benjamin F. Lindsey Wayne R. Lindsey Maschil, Inc. John L. Perry Rise Marketing Strategies Risk Management Group Joseph Silvestri Underwriting Management Group Western Continent Holdings George H. Williamson Charlotte Womack (Sentence: 36 months' probation) Virgil Wayne Womack (Sentence: 60 months) Action Date: November 10, 2002 Location: Anderson, SC On November 10, 2002, Virgil Womack was sentenced to 60 months in federal prison, and his wife, Charlotte Womack, was sentencedto 36 months probation for their involvement in a scheme that scammed investors out of $52 million. The Womacks' scheme spanned counties throughout South Carolina and Georgia and targeted victims from several other states. The scheme used 300 insurance agents to sell a phony business investment to 1,100 investors. The Womacks eventually cooperated with the government to assist in recovering more than $25 million of the $52 million taken from investors. On May 16, 2000, the Womacks and eight other defendants were indicted in Valdosta, Georiga. These defendants included Wayne R. Lindsey, Benjamin F. Lindsey, John L. Perry, Keith V. Harned, David A. Cawthon, George H. Williamson, Bruce D. Forrester and Joseph R. Silvestri. They were accused of having the following roles in the scheme which involved nine corporations: GFI Financial Inc., Western Continent Holdings, Maschil, Inc., Hypico, Inc., American Benefit Consultants, Keyes International Insurance Company, Ltd., Risk Management Group, Ltd., Underwriters Management Group and Rise Marketing Strategies. Virgil Womack was the president and chief executive officer of GFI, and was a member of its board of directors. Charlotte Womack was a member of the board of directors of GFI and was secretary of the corporation. Wayne R. Lindsey, alias Bobby Lindsey was the Executive Vice President of Operations of GFI, and was a member of the board of directors of GFI. He also conducted business under the name "Maschil, Inc." Benjamin F. Lindsey was the Vice President of Domestic Finance of GFI, and was the son of Wayne R. Lindsey. John L. Perry was the Vice President of Foreign Finance and CFO of GFI. Perry sometimes conducted business under the name Hypico, Inc. Keith V. Harned was a National Director of American Benefit Consultants. He was also a vice president of GFI. David A. Cawthon was a National Director of ABC. George H. Williamson was Chairman and Trustee of Keyes Insurance. Bruce D. Forrester was the Managing Director of Risk Management Group Ltd., who lived in or near Hollywood or Fort Lauderdale, Florida. Joseph Silvestri did business as Underwriters Management Group represented himself to be an independent underwriter and risk control administrator for Keyes Insurance.