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Table of Contents

Mail Fraud Scandal Rocks Chattanooga

Benjamin Reichel, a former public claims adjuster from the Chattanooga area, has been sentenced to 54 months in prison for his role in a elaborate mail fraud scheme that left numerous innocent victims financially devastated.

According to court records, Reichel operated a business called Loss Recovery Specialists, claiming to be a public claims adjuster licensed by the State of Tennessee. However, instead of using the funds to repair his clients’ homes, Reichel diverted the money for his own personal gain.

As part of a negotiated plea agreement in November 2020, Reichel pleaded guilty to felony mail fraud charges. On August 4, 2021, the Honorable Curtis L. Collier sentenced Reichel to 54 months in prison, followed by three years of supervised release.

Reichel’s scheme involved taking money from homeowners and other victims who had suffered property damage, and using it to fund his own lavish lifestyle. The United States argued at sentencing that Reichel used the funds to pay for a babysitter, massages, the lease on an Audi, personal vacations, and a swimming pool, impacting a number of innocent victims.

Reichel will be required to make restitution of over $850,000 to his victims, a staggering amount that reflects the scope of his crimes. The charges resulted from an investigation conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Cleveland Police Department, and other local law enforcement agencies.

Assistant U.S. Attorney Kyle J. Wilson represented the United States in the case. The sentencing of Reichel serves as a reminder of the importance of holding individuals accountable for their crimes, and the devastating impact that white-collar crimes can have on innocent victims.

The case is a stark reminder that even those who claim to be helping others can be driven by personal gain, and that the consequences of such actions can be severe. Benjamin Reichel’s sentence is a testament to the dedication of law enforcement agencies and prosecutors in bringing perpetrators to justice.