Fraud of the Week

August 31, 2015

Premium Fraud—Georgia

AMOUNT: $3.7 million

 

A Georgia man was sentenced to four years in prison and three years of supervised released for pocketing $3.7 million in premium payments. The individual scammed nearly 800 trucking companies in twenty-two states starting in 2013. He issued policy binders to clients and indicated that coverage would be provided by Lloyds of London. He pocketed the money instead, and tried to pay claims for losses out of premium paid by new victims. He has been ordered to pay $1.23 million in restitution along with the jail term.