Pelham Man Charged With Fraud Schemes Involving The Sale Of Fraudulent Surety Bonds

          CONCORD - Leo Rush, 77, of Pelham, New Hampshire, has been charged with five counts of mail fraud and five counts of wire fraud, United States Attorney Scott W. Murray announced today. 

          According to an indictment that was unsealed today, Rush managed the business activities of Newport Insurance Company, Inc., which was not licensed to sell insurance in any state.  The indictment alleges that Rush sold Newport Insurance surety bonds for construction projects in several different states.  The indictment alleges that Rush knew that Newport’s surety bonds were fraudulent and illusory because Newport was not a licensed insurer and it did not have the financial ability to make payments equal to the amount of the bonds.

          Rush appeared in federal court today and pleaded not guilty.  His trial date has not been set.

          The charges in the indictment are only allegations.  The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

          The case is being investigated by the New Hampshire Insurance Department and the Federal Bureau of Investigation.  It is being prosecuted by Assistant U.S. Attorney Robert Kinsella.

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