James Keating of Paoli, Pennsylvania, has been sentenced to twenty months of imprisonment, adopted by three years of supervised launch, for defrauding his former employer of greater than $1.4 million.
Keating was an assistant vp and surety bond claims handler at Allied World Insurance coverage Co. He later served in the identical capability at Crum and Forster subsidiary U.S. Hearth Insurance coverage Co., the place he additionally dealt with claims on Allied World surety bonds. All surety bond claims have been dealt with by means of Allied World’s places of work in Farmington, Connecticut.
In response to court docket paperwork and statements, between 2017 and 2021, Keating defrauded Allied World in two methods. First, he used a shell firm, American Development & Industrial LLC, to invoice Allied World for pointless claims work that was not carried out and took the proceeds for himself. Second, he solicited and obtained kickbacks from Allied World distributors by means of one other Keating-owned firm, Surety Danger Options (often known as “SRS” or “SR5”), with out the data of his employer.
Prosecutors mentioned Keating additionally prompted these distributors to make use of one other firm by which he had an undisclosed possession curiosity, Kodiak Asset Restoration, for asset searches at inflated costs. Keating profited practically $1 million by means of American Development & Industrial LLC, greater than $350,000 in kickbacks by means of Surety Danger Options, and practically $125,000 by means of Kodiak Asset Restoration.
U.S. District Choose Victor A. Bolden in New Haven additionally ordered Keating to pay restitution of $1,226,603.97, which represents the loss to Allied World of $1,446,491.95, much less $219,887.98 that he beforehand repaid as a part of a civil judgment.
On July 30, 2024, Keating pleaded guilty to wire fraud.
The sentencing was introduced by Marc H. Silverman, performing U.S. Legal professional for the District of Connecticut.
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