Former Insurance Broker Indicted For Embezzlement
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office for the Federal Bureau of Investigation; and Deborah Perry, Acting Regional Director of the United States Department of Labor, Employee Benefits Security Administration; announced today that a federal grand jury indicted John Mathis Lile III, 55, of Little Rock on two counts of embezzlement.
According to the indictment, Lile was formerly the President of Cosmopolitan Life Insurance Company (“Cosmo”) and President, CEO, and Chairperson of Advanced Insurance Brokerage of America, Inc. (“AIBA”), Little Rock-based companies that together funded and managed self-insurance health care plans for small businesses around the State. The indictment goes on to claim that Lile abused his position by using a company-issued credit card to charge personal expenses of more than $300,000 over a three-year span, all of which were ultimately paid for by funds from Cosmo and AIBA.
“When health care companies are victimized, the shockwaves extend far beyond office walls and negatively impact the lives and wellbeing of individual policy holders,” stated Thyer. “Those who steal from trusting citizens for personal gratification will ultimately find there is a price to pay. If convicted of these charges, Lile faces a statutory sentence of ten years on each count.”
“In today’s challenging economic times, hard-working Arkansans must be able to rely on the security of their employment benefits to support themselves and their families,” said SAC Coleman. “My office will continue to work together with the Department of Labor, the Department of Justice, and our other partners to investigate and pursue prosecution of those who choose to embezzle from employment benefit plans.”
“Theft of employee benefit plan assets jeopardizes the security of America’s workers. I hope that this indictment sends a clear message to all who hold an office of trust, or operate or administer employee benefit plans, that the Department of Labor is committed to vigorously pursuing those who abuse their positions for personal gain,” Perry added.
This investigation was conducted by the Federal Bureau of Investigation and the United States Department of Labor. It is being prosecuted by First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Alex Morgan.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.