Two from Chesapeake Enter Guilty Pleas to Charges Relating to defrauding life insurance companies out of millions of dollars
NORFOLK, Va. - Mitchell Marks, 58 and his nephew Danny Marks, 41, both from Chesapeake, Va., pleaded guilty today in Norfolk federal court to conspiracy to commit mail and wire fraud. The charges are in relation to their scheme to defraud life insurance companies out of millions of dollars.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after the Marks’ pleas were entered before United States District Judge Raymond A. Jackson. Mitchell Marks is scheduled to be sentenced on January 5, 2011, and Danny Marks is scheduled to be sentenced on January 10, 2011.
According to court documents, the Marks’ took out multiple life insurance policies on the older and sicker members of their families. In order to obtain the policies, they made material misrepresentations on the insurance applications regarding the number of life insurance policies that were in force on the proposed insured, their relationship amongst themselves, and the health and condition of the proposed insured. Documents also show that they sent imposters to take insurance medical examinations, so they could pass the exam and get the best rates on the policies. They attempted to obtain life insurance policies with an aggregate value greater than $16 million, and received payouts from multiple policies in excess of $3.5 million on the deaths of two individuals.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the Office of Inspector General for the Social Security Administration. Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.