Fraud of the Week
Crime Fraud – New York
Amount – Millions
The CEO of a payroll company bought a $1million crime policy while he was at the same time defrauding banks and finance companies out of tens of millions of dollars. He pled guilty to twelve felony counts including wire fraud, bank fraud, identity theft and filing false tax records.
He had lied on the application for insurance, in part providing false financial statements that inflated the value of the company and hiding his fraudulent actions. The carrier filed suit to have the policy voided, and was able to do so. While no claims were filed, the man faces jail time between seventeen and thirty-two years for his $100 million fraud scheme.