I-Team: Va. gov. candidate to donate contributions from Caramadre

Terry McAuliffe

The Democratic candidate for governor of Virginia, Terence "Terry" McAuliffe, is going to donate all of his campaign contributions from Cranston estate planner Joseph Caramadre, as well as all the money he invested in an annuity involving a terminally ill patient.

NBC 10's I-Team reported on Wednesday that McAuliffe was one of more than 200 investors who apparently unwittingly took part in an investment scheme masterminded by Caramadre.{} (Download client list)

Caramadre pleaded guilty to stealing the identities of terminally ill patients and used their personal information to falsely fill out annuity applications.

The annuities' insurance policy contained a death benefit for the owner of the annuity, who did not have to be related to the annuitant.

McAuliffe, who is in a tight race for governor in Virginia, said he will donate $26,000 in campaign donations he's received from Caramadre over the past several years and $47,000 he invested in an annuity using a terminally ill patient to the American Cancer Society.

McAuliffe said he had no knowledge of Caramadre's illegal scheme, and the candidate now calls his investment "horrible."

Caramadre's practice of using terminally ill patients as the annuitants was legal. What was illegal was stealing the patient's identity and falsely filling out the applications for the annuities.

Caramadre is confined at the Wyatt Detention Facility, awaiting sentencing.