Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Insurance Buyers Swindled In Multinational Scam


Insurance Buyers Beware – All May Not Be As It Seems

A large number of Insurance buyers were recently swindled in scam. While reading a recent issue of Business Insurance, I couldn’t help but read the article on the front page with the headline “Insurance buyers swindled in scam, prosecutors charge. The feds are accusing the defendants of selling bogus liability coverage.”


Three defendants, who are all named in the article, include an accountant in St. Kitts, West Indies, and brokers in both Texas and Quebec. The indictment was brought in U.S. District Court in Houston and accuses these defendants of issuing policies to nursing homes, apartment complexes and other businesses all across the country, and for providing bogus financial and reinsurance information to policyholders.

One of these policyholders was the operator of a tour boat that capsized killing 20 tourists. Allegedly, the claims were denied for the accident by the backdating of documents to make it appear that there was never coverage placed.

According to the article some of the accused have been arrested. However, there are at least three under indictment who are among the missing and are named in the article along with a plea from the feds for help in locating them.

Picture Hand Holding Board Insurance Buyers Protection Concept

Besides issuing fake policies, providing worthless Eurobonds, and backdating documents, one member of this group is also alleged to have tried to pressure his daughter into lying to a grand jury investigating the case. Her name had been forged as claims manager and her father wrote her a lengthy note telling her just how to answer the grand jury’s questions.

As a whole, and if convicted, this illustrious group faces statutory maximum sentences of 20 years per count on one count each of conspiracy and money laundering and nine counts of wire fraud. Separately, one of the defendants also faces 20 years on an obstruction of justice charge.

Good luck to the feds! I hope they find them all, try them all and see how it all shakes out.

©J&L Risk Management Inc Copyright Notice



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.