Justice Dept. probing corruption claim

FORT LAUDERDALE, Fla., July 3 (UPI) -- The U.S. Justice Department is investigating corruption claims made by an insurance executive in Fort Lauderdale, Fla., knowledgeable sources say.

The three unidentified sources said Justice Department officials are looking into claims made by former Mutual Benefits Corp. head Joel Steinger, who alleges top Florida officials helped him try to end an insurance fraud investigation into his insurance company, The Miami Herald said Friday.

Following Steinger's accusations against top fundraisers, lobbyists and lawyers, the Justice Department convened a federal grand jury to look into the allegations, that center on a 1999-2000 statewide grand jury probe.

Some of the officials named by Steinger include individuals close to Florida Attorney General Bob Butterworth and his successor, Charlie Crist.

Mutual Benefits was eventually indicted for racketeering by the jury and because of that a series of insurance industry reforms were sent to the Florida Legislature and Department of Insurance.

Unidentified legal observers told the Herald that Steinger likely made the corruption allegations in order to obtain a favorable plea deal, since he is facing up to 20 years in prison on charges he defrauded Mutual Benefits investors.