Fast-talking figure in investment scheme pleads guilty to securities violations

Posted on May 12th, 2009 – 10:39 AM
By James Shiffer

Ever since I wrote last year about a trouble investment scheme called Advanced Health Scan, investors keep calling me, from all over the country. What happened to my money, they plead. What’s going on with this company?

I wish I could help. It probably doesn’t bode well for the future of Advanced Health Scan that one of its key figures, Daniel A. Caterino, this month pleaded guilty to a felony securities violation in Alabama. The business “opportunity” Caterino was peddling sounds suspiciously similar to Advanced Health Scan: he and others were purportedly raising money for a chain of body imaging clinics in Arizona, Texas and California. But neither Caterino nor the company, Lifeline Imaging Systems, were licensed to sell securities in Alabama. “It was alleged that investors’ money was used for personal or unrelated business expenses,” according to the Alabama Securities Commission.

Caterino’s guilty plea relates to a particular offer which was revealed in an investigation into a “boiler room” operation in California that marketed such potentially fraudulent offers.

When I interviewed him last year, I found it difficult at times to get a word in as Caterino explained how Advanced Health Scan was going to make a fortune, if investors would just leave him alone for a while. He didn’t want to talk about the then-pending charges in Alabama. As for his prior federal prison term for mail fraud, well, he had found God since then. “We’re not the bad guys, we’re the good guys,” he told me. Caterino will be sentenced in Alabama on July 27.

One response to "Fast-talking figure in investment scheme pleads guilty to securities violations"

Whistleblower » Blog Archive » Bible-waving investment pitchman gets prison time for securities fraud in Alabama says:

July 29th, 2009 at 8:45 pm

[...] up a Bible as he counseled angry investors to just give him more time to make the business work. After pleading guilty in May, Caterino will have 30 months in an Alabama prison to brush up on his Scripture. For my more [...]