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Defendant Admits Defrauding Allied World Insurance Company
JAMES KEATING, 52, of Paoli, Pennsylvania, pleaded guilty today in New Haven federal court to an offense stemming from a fraud scheme against his former employer, Allied World Insurance Company.
Keating, an Assistant Vice President and surety bond claims handler, used a shell company to bill Allied World for unnecessary claims work that was not performed. He also solicited and received kickbacks from Allied World vendors through another company, Surety Risk Solutions, without the knowledge of his employer.
According to court documents and statements made in court, Keating defrauded Allied World in two ways. First, he used American Construction & Industrial LLC to bill Allied World for unnecessary claims work that was not performed. Second, he solicited and received kickbacks from Allied World vendors through Surety Risk Solutions.
Keating profited nearly $1 million through American Construction & Industrial LLC, more than $350,000 in kickbacks through Surety Risk Solutions, and nearly $125,000 through Kodiak Asset Recovery. He has agreed to pay restitution of $1,226,603.97, which represents the loss to Allied World of $1,446,491.95, less $219,887.98 that he previously repaid as part of a civil judgment.
The Federal Bureau of Investigation investigated the matter, and Assistant U.S. Attorney David E. Novick is prosecuting the case. Keating is released on a $100,000 bond pending sentencing, which is not scheduled.
This brazen scheme highlights the importance of vigilance in the insurance industry. As we continue to investigate and prosecute such crimes, we must also emphasize the need for corporate accountability and transparency.
Keating’s guilty plea is a significant step towards justice, and we will continue to monitor the case as it moves forward.
Key Facts
- State: Connecticut
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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