Palm Beach County Resident Sentenced to Prison in connection with a $1.4 Million Insurance Fraud Scheme
A Palm Beach County resident was sentenced to prison in connection with a $1.4 million dollar insurance fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Alexander Hartman, of Palm Beach County, pled guilty, on January 24, 2019, to four counts of wire fraud, in violation of Title 18, United States Code, Section 1343 (18-80236-CR-Rosenberg). On April 5, 2019, Hartman was sentenced by U.S. District Judge Robin L. Rosenberg to 33 months in prison, to be followed by three years of supervised release.
According to the court record, including the agreed upon factual proffer, Hartman was the sole owner and operator of Alexander Insurance Consultants (“AIC”). During the period of August 2014 through May 2017, Hartman, while operating as the insurance agent/broker of AIC, engaged in a fraudulent course of conduct aimed at enriching himself. Hartman submitted to Premium Assignment Corporation (“PAC”), via wire, false documentation in support of premium finance loans. Hartman falsely represented to PAC that Lloyds of London had issued insurance policies for companies, that these companies were using PAC’s financing services to finance their premium payments, and that AIC had brokered the contracts and was entitled to collect the premiums on behalf of the insured. None of the named companies were clients of AIC or Hartman and three of the companies did not exist.
Hartman defrauded PAC of approximately $1.4 million when he submitted false insurance obligations and used non-existent clients for which he sought premium financing.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS in this matter. This case was prosecuted by Assistant U.S. Attorney Robin Waugh.