2015 0315 - WSJ - Young Financier’s Insurance Empire Collapses: Investments of insurance companies owned by Southport Lane Management were swapped for unusual and sometimes worthless assets, by Leslie Scism and Markmaremont - [link]
James M. Fail
1990 0710- NYT - Panel Hears How Federal Aid Profited a Savings Institution, By Jeff Gerth, Special To the New York Times - [link]
Bluebonnet Savings Bank, made up of the 15 savings and loan associations
$1.85 billion in Federal aid from the Federal Home Loan Bank Board.
In addition, insurance regulators from Arizona and Illinois told the subcommittee about violations or possible violations by insurance companies used to finance Bluebonnet's acquisition.
The Phoenix-based Farm and Home Life Insurance Company, one of Mr. Fail's life insurance companies...
2020 0305 - BayouBrief - Top Donelon Donor Found Guilty of Attempting to Bribe NC Insurance Commissioner: Greg Lindberg, who was convicted on political corruption charges in North Carolina, donated at least $25,000 to Louisiana Insurance Commissioner Jim Donelon, who had approved Lindberg's acquisition of two life insurance companies. - [link]
Recent Cases - Some recent FBI investigations will disclose the amount of trust placed with some of these individuals and the magnitude of fraud as a result of this trust. The National Heritage Life insurance company was the largest insurance company failure in U.S. history.
The National Heritage Life case resulted in over $450 million in losses. Since the mid-1990's, 16 defendants were convicted. The most egregious crimes were committed by Shaolom Weiss and Keith Pound, who were recently sentenced to 845 and 700 years respectively.
This is believed to be the longest sentence ever imposed in not only an insurance fraud prosecution but for any white collar crime. This investigation also resulted in a $100 million forfeiture verdict. In a recent viatical-related insurance fraud matter, Frederick Brandau was sentenced to 55 years
2007 1004 - Justice.gov - Former Metlife Broker Indicted for Defrauding September 11 Widow of Victim-compensation Fund Proceeds - [link]
2015 1210 - justice.gov - Jeffrey Cohen Sentenced to 37 Years in Prison in Massive Insurance Fraud Scheme - [link]
2023 0110 - oig.ssa.gov Former Insurance Agent Pleads Guilty to Defrauding Customers by Creating Life Insurance Policies in their Names without Victims' Knowledge - [link]
Specifically, Seneca Birchmore, 45, of Cincinnati,
Local law enforcement departments received complaints from victims that money was being automatically withdrawn from their bank accounts for insurance policies they never ordered. Many of the victims are senior citizens, and most reside in Dayton, Englewood, Middletown and Cincinnati.
Diversified Lending Group run by an outside money manager named Bruce Friedman
MetLife
2010 0930 - FBI.gov - Owner of Sherman Oaks Investment Company Indicted on Federal Fraud Charges in $228 Million Ponzi Scheme, U.S. Attorney’s Office - [link]
Donahoo said Ramirez is one of 98 DLG investors whose pursuit of a class-action case against MetLife was denied in 2015. Individual cases, however, were allowed to proceed and Ramirez’s was the first to go to trial, he added.