PALM BEACH COUNTY, FL – A Palm Beach County man is trading sun and sand for a federal prison cell after being sentenced for a brazen $1.4 million insurance fraud. Alexander Hartman, the owner and operator of Alexander Insurance Consultants (AIC), received 33 months behind bars Friday for systematically defrauding Premium Assignment Corporation (PAC).
Hartman, 48, pled guilty on January 24, 2019, to four counts of wire fraud (Title 18, United States Code, Section 1343). U.S. District Judge Robin L. Rosenberg didn’t show much leniency, tacking on three years of supervised release after Hartman serves his time. The Secret Service, through its Miami Field Office, spearheaded the investigation that brought Hartman down.
The scheme, which ran from August 2014 through May 2017, revolved around bogus insurance policies and nonexistent clients. Hartman submitted falsified documentation to PAC in support of premium finance loans, falsely claiming Lloyds of London had issued policies for companies that were, in reality, either not clients of AIC or didn’t even exist. He pocketed the funds, leaving PAC holding the bag for $1.4 million.
According to court records, Hartman operated as an insurance agent/broker, but the entire operation was a carefully constructed illusion. He misrepresented AIC’s role, claiming the company had brokered legitimate contracts and was entitled to collect premiums. The truth? A web of lies designed to enrich Hartman at the expense of PAC. The US Attorney’s Office for the Southern District of Florida, led by Ariana Fajardo Orshan, brought the charges.
“Hartman’s greed led him down a path of deception and ultimately to a federal prison,” said Special Agent in Charge Brian Swain of the U.S. Secret Service. “The USSS is committed to investigating and dismantling these types of fraudulent schemes to protect financial institutions and the public.” Assistant U.S. Attorney Robin Waugh prosecuted the case.
Court documents related to the case, including the factual proffer, are available on the U.S. District Court for the Southern District of Florida website at www.flsd.uscourts.gov and through PACER at http://pacer.flsd.uscourts.gov. This case serves as a stark reminder that financial crimes, no matter how complex, will be pursued by federal investigators.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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