Insurance Broker Sentenced For $3.8M Fraud Scheme

[Northeast Agent]

Insurance Broker Sentenced For $3.8M Fraud Scheme – InsuranceNewsNet

According to the evidence presented at trial, Abou-Khatwa was involved in a scheme to defraud CareFirst BlueCross Blue Shield by creating fictitious employees and altering years of birth of actual employees by as much as 40 years to lower the average age of insured groups and fraudulently obtain lower insurance premiums.

He then inflated the rates charged to clients and pocket(ed) the difference, which was in excess of $3.6 million. As part of his scheme, Abou-Khatwa also stole the identities of former employees and clients, lowered their ages, and moved them in and out of shell companies in order to obtain the fraudulently lower premiums.

When groups controlled by Abou-Khatwa were audited by CareFirst, he created false census reports, false D.C. wage and tax reports, and false paystubs to coverup his fraud.

 

[scagnt83]

Insurance Broker Sentenced For $3.8M Fraud Scheme – InsuranceNewsNet

According to the evidence presented at trial, Abou-Khatwa was involved in a scheme to defraud CareFirst BlueCross Blue Shield by creating fictitious employees and altering years of birth of actual employees by as much as 40 years to lower the average age of insured groups and fraudulently obtain lower insurance premiums.

He then inflated the rates charged to clients and pocket(ed) the difference, which was in excess of $3.6 million. As part of his scheme, Abou-Khatwa also stole the identities of former employees and clients, lowered their ages, and moved them in and out of shell companies in order to obtain the fraudulently lower premiums.

When groups controlled by Abou-Khatwa were audited by CareFirst, he created false census reports, false D.C. wage and tax reports, and false paystubs to coverup his fraud.

That sounds like more work than actually selling more policies.

 

[Markthebroker]

Some of these scams require such a high level of work, organization, and creativity, that I am pretty confident the perpetrators would make as much or more with less effort and no prison time if they just did everything above board.

While I can be rude, offensive, and often tactless, those who know me well will say I'm an honest and in many ways generous guy, and being honest and fair in and outside of business has gotten me to a very good place at a young age. I did have to work very hard and take some serious risks, though.

 

[shonceman]

Some of these scams require such a high level of work, organization, and creativity, that I am pretty confident the perpetrators would make as much or more with less effort and no prison time if they just did everything above board.

But how else can they get that delicious prison chow?

 

[Indiana2021]

How much time did he get