Fraud of the Week
December 16, 2019
Life Insurance Fraud — Massachusetts
Amount: $11.5 million
A Boston man has been charged in connection with a scheme to defraud several life insurance companies. In April 2015 the fraudster's brother passed away during a visit to China. Between December 2016 and March 2018 the fraudster allegedly took out twenty-four life insurance policies in the name of his brother, with himself and his parents as the beneficiaries. In total, the policies carried total coverage limits of $11.5 million. The fraudster also took steps to make it appear as though his brother was still alive; opened and used bank accounts in his brothers' name, as well as renewing his brothers' driver's license. Then the fraudster obtained a false Chinese death certificate claiming that his brother passed away in August of 2018, and submitted over $5 million in life insurance claims. During meetings with an undercover agent posing as a claims manager willing to participate in the scam, the fraudster admitted that his brother passed away prior to the inception of the policies.
The charges against him included one count of mail fraud, and one count of wire fraud, which each carry a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss from the offense.

