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Crackdown on Life Insurance Scam Exposes Five Defendants
Five individuals have been indicted in a life insurance fraud scheme that aimed to obtain policies without the insured’s knowledge, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal grand jury returned a 35-count indictment charging Luz M. Santiago-Torres, Jimmy E. Santiago-Burgos, Félix Rosa-Rosa, José Rivera-Esparra, and Ulises Feliciano-Caraballo.
The indictment alleges that the conspiracy, which began in November 2006, involved applying for, paying for, and receiving life insurance policies for insureds without their knowledge and consent. Participants in the scheme submitted life insurance applications containing false information, misrepresentations, and forged signatures to insurers, including Triple-S, Multinational, Occidental, Americo Financial, Universal, National, Great American, and Metlife.
As part of the conspiracy, insurance agents, including Félix Rosa-Rosa, José Rivera-Esparra, and Ulises Feliciano-Caraballo, prepared and submitted the fraudulent life insurance applications to the various insurance companies. Upon the death of the insureds, payments were made to the listed beneficiaries, including Santiago-Torres and Santiago-Burgos.
More than 30 fraudulent insurance policy applications were identified involving over 20 different insureds. Those insureds include five individuals who are still alive with active policies in their name as of the date of the indictment, four whom died of natural causes, and four whom suffered violent deaths in Juana Diaz, Puerto Rico, including murder.
The four violent deaths include the shooting deaths of Daniel Santiago Ramos and Reinaldo Santiago Torres on July 1, 2011 and August 28, 2012 respectively, as well as the deaths of brothers Jose A. Torres-Cruz and Margarito Torres Cruz, who died on October 31, 2009 and June 2, 2018 respectively, when each was struck by a vehicle and killed on Road 552 in Juana Diaz.
The total of the fraudulent insurance policies involved in the conspiracy exceeds five million dollars. In excess of one million five hundred thousand dollars was actually paid by life insurance companies as a result of insureds’ deaths. The co-conspirators listed the personal identification information of insureds on life insurance applications, including their name, social security number, and date of birth; listed false contact information including false residential addresses, false mailing addresses, and false telephone numbers.
Multiple insureds, for whom life insurance policies were obtained without their knowledge and consent, resided at and were provided elderly care at Hogar Sustituto Luz Santiago y Fernando Santiago, also known as Sueño Felíz, a home for the elderly operated by defendant Santiago-Torres in Juana Diaz, Puerto Rico. Sueño Felíz was licensed to operate with the Puerto Rico Department of Family until the license was revoked on or about April 5, 2011.
The indictment also charges defendants Luz M. Santiago-Torres, Félix Rosa-Rosa, and José Rivera-Esparra with aggravated identity theft of insureds’ personal identification information. The investigation was handled by the FBI with the assistance of the United States Postal Inspection Service, and the Puerto Rico Police Department, pursuant to a referral from the Office of the Insurance Commissioner of Puerto Rico.
Key Facts
- State: Puerto Rico
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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