United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

FEDERAL GRAND JURY IN DALLAS INDICTS LOCAL MAN
ON FRAUD CHARGES

CPA Robert David Neal is Former Trophy Club, Texas, Resident

A federal grand jury in Dallas returned an indictment yesterday charging Robert David Neal, a/k/a “Michael Skinner” a/k/a “Albert Davis,” with six counts of wire fraud, announced United States Attorney Richard B. Roper. Neal, a former resident of Trophy Club, Texas, is currently in federal custody because of a supervised release violation stemming from a May 2002 federal felony conviction in the Northern District of Texas. If convicted on all charges in this indictment, Neal, age 56, faces a statutory maximum sentence of 120 years imprisonment, a $1.5 million fine and restitution. The indictment also includes a forfeiture allegation which would require Robert David Neal to forfeit all of the illegal proceeds from the scheme including $120,000 in United States currency, if convicted on any of the six counts alleged in the indictment.

According to the indictment, from February to September 2005, Robert David Neal formed business entities such as Cambridge Capital Management, Inc. and SNCC (Safety National Casualty Corporation), in order to conduct an insurance fraud scheme. Neal also used the names of American Lloyds Life & Casualty, Ltd., Cambridge Benefits Group, Ltd., and ALLC to conduct his fraudulent scheme.

As part of the scheme, Neal, using the aliases “Michael Skinner” and “Albert Davis” contacted and met with consultants and executives from legitimate professional employer organizations (PEOs) to present a marketing pitch to sell them fraudulent workers’ compensation insurance plans at below-market prices. Neal furnished them quotes for premiums and certificates of coverage and even created fraudulent insurance application forms and policies by piecing together legitimate insurance companies’ forms. In the course of his fraudulent scheme, Neal hired a third-party administrator, RTW, in Bloomington, Minnesota, to process small claims filed by individuals supposedly covered under the policies.

To further his scheme, Neal fraudulently represented that American Lloyd’s Life and Casualty, Ltd. Group (ALLC) included the wholly owned subsidiary, Cambridge Benefits Group, Ltd. and that ALLC had the financial strength to underwrite a wide range of risks because it was controlled by two of the largest Lloyd’s underwriting syndicates managing assets in excess of $2.6 million. He further fraudulently represented that ALLC and its subsidiaries were leaders in the area of reinsurance throughout North America and the Carribean and that ALLC issued its first policy in 1964 and that Cambridge Benefits Group, Ltd. was chartered in 1988 and served as the Managing General Underwriter for a number of insurance carriers throughout the United States.

DSK Services, Inc. of Homosassa, Florida, Employers Consortium, Inc. of Lombard, Illinois, and Risk Management Consultants, of Arlington Texas are legitimate businesses (PEOs) that were victims of Neal’s fraud. In total, these companies wired more than $300,000 to Neal for what they considered to be premium payments for workers’ compensation insurance. However, no legitimate insurance policy ever covered any of the small businesses that were supposedly insured through Neal.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.

U.S. Attorney Roper praised the investigative efforts of Federal Bureau of Investigation, who is leading the effort along with the assistance of the U.S. Department of Labor and the Texas Department of Insurance. The case is being prosecuted by Assistant United States Attorney Erin Nealy Cox.

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