Broward County’s first man admits deep ties to Mutual Benefits

A A A Comments (1) By Bob Norman Thursday, Mar 5 2009

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When Klenet sold LSI in 2007 for $1.7 million to Cantor Fitzgerald, he claims to have repaid Ginsburg about $800,000 and Adkins about $50,000. He said that another half-million dollars went to customers who had lined up to buy policies overseas and that about $150,000 went to "miscellaneous bills."

He paid nothing back to the original financiers of the operation, Steven Steiner and Henry Fecker. Today, the court-ordered receivership that runs what's left of Mutual Benefits is demanding that Steiner and Fecker return $2 million in Mutual profits. Steiner and Fecker allege in court documents that all that money went to Klenet for the LSI venture. They are suing Klenet in federal court for return of the money.

Mark Poutenis

Ritter and Klenet let the Mutual Benefits money rain.

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So in the end, Klenet apparently ripped off Steinger, the man behind LSI from the beginning. And if Steiner and Fecker are successful in their lawsuit, Klenet could go bankrupt.

You might call it karma.

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