Chesapeake Man Sentenced on Charges Relating to Defrauding Life Insurance Companies out of Millions of Dollars
NORFOLK, Va. – Danny Marks, 41, from Chesapeake, Va., was sentenced in Norfolk federal court today to two years and two months in prison for conspiring to commit mail and wire fraud. The charge relates to a 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 Marks was sentenced by United States District Judge Raymond A. Jackson. Marks and co-defendant Mitchell Marks both pled guilty on October 4, 2010. Mitchell Marks was sentenced last week, on January 5th, to 10 years in prison by United States District Judge Raymond A. Jackson.
According to court documents, Danny Marks conspired to take out multiple life insurance policies on older and sicker family members. In order to obtain the policies, material misrepresentations on the insurance applications were made. The misrepresentations included the number of life insurance policies that were in force on the proposed insured, relationships, and the health and condition of the proposed insured. Court documents also showed that imposters were sent to take insurance medical examinations, so they could pass the exam and get the best rates on the policies. Attempts to obtain life insurance policies with an aggregate value greater than $16 million were made and payouts from multiple policies in excess of $3.5 million on the deaths of two individuals were received.
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.justice.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.