Chicago insurance executive facing fraud charge

On Behalf of | Jul 31, 2018 | Federal Crimes |

Chicago’s famous skyline has over the years been dominated by iconic skyscrapers bearing the names of major insurance companies, including the Willis Tower, Aon Center and of course, the John Hancock Center (now known by its 875 North Michigan Avenue address).

The city’s insurance industry was recently shaken by news that a vice president of an insurance underwriting group has been charged with wire fraud by the U.S. attorney’s office for the Northern District of Illinois.

The 54-year-old is accused of pocketing $13.5 million by issuing fraudulent “matching deductible” policies and collecting the premiums from a corporate client. The executive was in charge of an account that included 20 Pennsylvania hospitals, the prosecutor’s office said.

According to a news account, the prosecutor’s office claims that during an 11-year period that ended in 2016, the suspect issued insurance policies that had not been authorized by his employer. He allegedly created a trail of false estimates, invoices and policies and then collected premiums and diverted the funds to a shell company that he controlled.

The money was then used for personal expenses, the prosecutor’s office alleges, including real estate, travel, meals and credit card bills.

If convicted of the federal wire fraud charge, the insurance executive could be sentenced to up to 20 years in prison. Arraignment is to be in U.S. District Court in Chicago, but it has not yet been scheduled.

Wire fraud cases are typically complex, requiring the help of a criminal defense attorney who works with forensic and investigative accountants, financial analysts and other experts to carefully dissect and interpret crucial data and transactions.

Contact the law offices of Darryl A. Goldberg to schedule a consultation about your white collar case.


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