Two Plead Not Guilty to Fraud Charges in Virginia

Two Costa Rican men accused in a $670 million insurance industry scam have pleaded not guilty in federal court in Virginia.

Minor Vargas Calvo and Jorge Luis Castillo entered their pleas Wednesday in Richmond on seven counts of conspiracy, wire fraud and mail fraud. A jury trial was tentatively set for April 12.

Vargas is president of Provident Capital Indemnity Ltd. and Castillo is an outside auditor. Provident sold bonds guaranteeing funding for life settlement companies, which buy life insurance policies from insured people at less than face value and collect the benefits when those people die.

Prosecutors say the defendants misled clients and investors about Provident’s financial stability and whether its books had been audited.