Fraud of the Week

Broker  Embezzlement – Michigan

Amount – $375, 744

A Michigan broker has been charged with conducting a criminal enterprise, four counts of identity theft, two counts of embezzlement of over $100,000 and false filing of a tax return in connection with her insurance fraud scheme. She would take clients' money who paid in full and forge financial agreements with the underwriter, who would ensure that the client has the policy issued while she had the money. The contracts weren't paid and the policies ultimately cancelled, generally without the clients' knowing. Eventually she stopped forging the agreements and just kept the money without even pretending to put a policy in force. The fraud began in 2015 and continued until 2018 before the company was shut down by Michigan regulators. If convicted she faces up to twenty years in prison and restitution.