In a brazen case of insurance fraud, two San Diego ship owners, Christopher Switzer and Mark Gillette, have pleaded guilty to conspiring to sink their own vessel, the 57-ft boat ‘Commander,’ for a hefty insurance payout.
According to court documents, on October 11, 2016, Switzer and Gillette intentionally set out to sea with the plan to destroy the Commander. The two men attempted to sink the vessel by destroying plastic PVC piping in the engine room, pumping sea water onto the boat, and puncturing its bulkhead.
The scheme failed to completely sink the Commander, and it was found adrift near Dana Point, California, the next day. A commercial salvage company successfully towed the boat back to San Diego Bay, where investigators uncovered the plot.
Switzer and Gillette gave false statements to officials after their rescue, claiming the first sign of a problem was a power failure and that they couldn’t figure out why the vessel was flooding. They face a maximum penalty of 10 years in prison and a maximum $250,000 fine.
As part of their plea agreement, the two men are required to reimburse the U.S. Coast Guard over $15,000 for the cost of launching the rescue helicopter and other expenses. Sentencing is scheduled for March 6, 2017, before U.S. District Judge Michael M. Anello.
Special Assistant U.S. Attorney Ari D. Fitzwater and Assistant U.S. Attorney Patrick J. Bumatay are leading the investigation, which was conducted by the U.S. Coast Guard Investigative Service.
In a shocking display of greed, Switzer and Gillette’s actions put themselves and emergency responders at risk of death or serious injury. Their plea agreement acknowledges the severity of their crime and the potential consequences of their actions.
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Key Facts
- State: California
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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