On Jan. 8, it was reported that three California-based insurance agents were sentenced to prison after they were convicted on charges associated with a fraudulent life insurance scheme. All three of the insurance agents were convicted on wire fraud and identity theft charges in early 2017.
According to the U.S. Attorney's Office, the three insurance agents paid recruiters to find participants who would undergo medical exams in exchange for about $100. The insurance agents then used the personal information from the tests to submit applications for life insurance without the participants' knowledge or consent. It appeared that the individuals also had participants take fake surveys of a medical exam company. The information obtained from the surveys was also used to apply for life insurance.
The three insurance agents were sentenced to prison for three to five years followed by three years of supervised release. Additionally, they were required to pay $2.8 million in compensation to the insurer that employed them. Each of the three insurance agents will be required to complete 140 hours of community service once they are released from prison.
Those who are facing charges for federal offenses, such as identity theft or wire fraud, could be sentenced to prison and face additional consequences if they are convicted. Because the consequences for being accused of committing federal crimes is so high, a criminal defense attorney may open an independent investigation into the allegations and determine what defense strategy may work for a person's unique situation. In some cases, the attorney may shed enough doubt on the evidence and the circumstances that the charges are reduced or dismissed. In other cases, the attorney may be able to negotiate a favorable plea deal that reduces the potential legal consequences.