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U.S. Department
of Justice
United States Attorney Richard B. Roper
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FOR IMMEDIATE RELEASE |
CONTACT: KATHY COLVIN |
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MONDAY, OCTOBER 1, 2007 WWW.USDOJ.GOV/USAO/TXN |
PHONE: (214)659-8600
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LOCAL CPA SENTENCED TO MORE THAN 27 YEARS From February to September 2005, Robert David Neal formed business entities such as Cambridge Capital Management, Inc. and S.N.C.C., d/b/a Safety National Casualty Corporation for the explicit purpose of conducting an elaborate insurance fraud scheme. Neal also used the names of American Lloyds Life & Casualty, Ltd. and Cambridge Benefits Group, Ltd. to conduct his fraudulent scheme. It was part of Neal’s scheme to represent to his victims that the companies he created were affiliated with the reputable Lloyd’s of London, Safety National Casualty Corporation (based out of Missouri) and AIG (based out of New York). As part of the scheme, Neal, using the aliases “Michael Skinner” and “Albert Davis” and “David Nelson,” 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 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 legitimate third-party administrator, RTW, in Bloomington, Minnesota, to process the small claims filed by individuals supposedly covered under the policies. To further his scheme, Neal had a professional website company create a website for American Lloyd’s Life and Casualty, Ltd. (ALLC) to fraudulently represent that 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 1underwriting 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. He also fraudulently represented 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. Law enforcement investigating the case were able to verify that none of the information on the website was accurate. U.S. Attorney Roper praised the investigative efforts of Federal Bureau of Investigation, who led the investigation along with the assistance of the U.S. Department of Labor and the Texas Department of Insurance. The case was prosecuted by Assistant United States Attorney Erin Nealy Cox.
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