Joseph told detective he was running 60-member 'investment club'

Several weeks before his arrest on murder charges, George Joseph told a Scott County detective he was running an "investment club" with about 60 members.

Joseph, 48, is accused of killing his wife, Mary, and 18-year-old son, Matthew, before turning the gun on himself in an apparent suicide attempt May 30 at their home on West Cape Rock Drive, court records show.

Joseph told a Cape Girardeau detective he had been despondent over financial issues, according to a probable-cause affidavit filed in Cape Girardeau County Circuit Court.

Keith L. Monia

Detective Sgt. Branden Caid of the Scott County Sheriff's Department interviewed Joseph in connection with a financial exploitation case earlier this year.

Keith Monia, 52, was indicted May 16 in Scott County Circuit Court on two counts each of forgery and financial exploitation of the elderly, court records show.

According to a probable-cause affidavit filed April 4 in Scott County, Monia took $220,000 from a Scott City couple, telling them he would invest the money in annuities.

Instead, most of the money ended up going to Joseph, Caid said.

Caid interviewed both men in the course of his investigation.

"They both pointed fingers back toward each other," Caid said.

Monia's version

Monia told Caid he assisted Joseph with a life insurance policy a few years ago, found him knowledgeable about the insurance industry, and assumed he had a valid license to sell insurance.

Monia invited Joseph to join him in a business venture whereby Monia, acting as an unlicensed "insurance consultant," would solicit clients to purchase insurance policies and annuity plans from Joseph, who would then receive a commission for handling the transactions, Caid said.

Joseph was not affiliated with the insurance industry, Caid said, but Monia told Caid he didn't bother to confirm that because Joseph was so knowledgeable, it never occurred to Monia he wouldn't have an insurance license.

Monia himself has been without a license at various times because of ethical complaints. In February, the Missouri Administrative Hearing Commission refused to renew his license after finding he had "inappropriately withheld, misappropriated and converted" a client's money "by the use of fraudulent and dishonest practices."

That client, Paul Bollinger of Jackson, has filed a lawsuit against Monia, claiming he pocketed $80,000 that Bollinger had given him to invest in an annuity. Monia has said he believed the money was a personal gift.

Monia's criminal charges stem from a similar case.

In 2010, Monia persuaded a Scott City man to write him a check for $120,000 to invest in an annuities plan, authorities claim.

Bank records show Monia deposited the check into his personal account, then made a cash withdrawal of $20,000 about a week later, Caid said.

The same day Monia withdrew the cash, he wrote a $100,000 check to Joseph with the words "investment club" in the memo line, Caid said.

A little more than a year later, Monia instructed the Scott City man's wife to write a $100,000 check to Joseph, whom he identified as an insurance banker from New York City who would invest the money in an annuities plan through American Equity Investment Life Insurance Co., Caid said.

Monia told Caid he took the check to Joseph, who failed to submit it to American Equity, Caid said.

Joseph's version

Joseph told Caid a different story.

According to Caid, Joseph claimed he had a license and degree in "some kind of business trade" and was running an investment club with about 60 members.

"He said, 'I have an investment club, and Monia wanted to join my investment club. He came to me with a check in 2010, I believe, and he became a member of the club,'" Caid said.

Some time later, after investing about $190,000 in Joseph's club, Monia violated "some club rules" and was asked to leave the club, Caid said.

He said Joseph told him Monia was concerned about his tax liability and had asked Joseph to hold the principle he had invested and give it back to him in installments over a period of time instead of returning all of it to him at once.

As Joseph represented the situation to Caid, "He was just doing him [Monia] a kind favor, giving him an installment payback plan," Caid said.

He said Joseph provided him with a variety of documentation, including his application for a Scottrade account, a Scottrade checkbook, deposit slips, copies of checks written to Monia once or twice a month from three different accounts -- one at Scottrade and one each at two separate banks -- and checks linked to money deposited into an account that also was used for online investments.

"He had all the proper documentation," Caid said.

Joseph did not present any licensing credentials, but there was no reason to ask for them, Caid said.

"What he did through that account didn't pertain to my victims," he said.

No records of Joseph as a financial investment adviser, agent, broker or dealer exist with the Financial Industry Regulatory Authority database, which was checked independently this week by the Southeast Missourian and through a representative in the Missouri Secretary of State's Investment Protection Center. The database provides investors a way to research the backgrounds and view records on financial representatives.

The club

Joseph's club -- which had 60 members and no complaints of wrongdoing -- appeared to be a way for wealthy people to make investments while minimizing their tax liability, Caid said.

"Obviously I didn't ask to look at the other members' folders or files," Caid said. "I figured if he had 60 members, ... if they didn't get their monthly check, they would complain. ... He didn't send up a bunch of red flags that he was shady, at least at first glance."

Caid speculated that if Joseph didn't actually invest the money in online trading, he might have paid early investors' dividends out of the money invested by new club members.

One investor, speaking on condition of anonymity, has said Joseph contacted investors this spring to tell them he was experiencing serious health problems, was unable to continue making online trades for them, and would refund their principle by September, with early participants receiving their money first.

"He actually sent a letter saying whoever was the first in should be the first out -- him sending all the money," the woman said.

Defense attorney Bryan Greaser on Wednesday said he is representing Joseph on the charges stemming from the May 30 shootings. Joseph has been charged with two counts of first-degree murder and one count of armed criminal action in that case. Greaser declined to discuss the specifics of the case.

Joseph is scheduled for a counsel status hearing Monday in Cape Girardeau County Circuit Court.

Reporter Erin Ragan contributed to this report.

epriddy@semissourian.com

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Pertinent address:

1220 W. Cape Rock Drive, Cape Girardeau, Mo.