Massachusetts Insurance Brokers Accused of Stealing Over $700K from Clients

A Massachusetts couple has been federally charged in an alleged insurance fraud scheme involving more than $700,000 in misappropriated client funds. The operators of BL Insurance Brokerage, LLC, are accused of collecting insurance payments from clients and keeping the money for personal use rather than forwarding it to insurers. The alleged misconduct took place between March 2023 and March 2024.

Federal investigators say the accused used new client payments to cover unpaid premiums for existing clients, creating a Ponzi-style arrangement to keep their business afloat. In some cases, they allegedly issued fraudulent documents to clients, falsely confirming insurance coverage that did not exist.

The scheme reportedly affected at least 50 individuals and insurance providers. Prosecutors note that victims were led to believe they had valid coverage when they were, in fact, uninsured — a situation that could lead to major financial exposure in the event of a loss.

Both defendants face charges of wire fraud and conspiracy to commit wire fraud, each carrying a potential sentence of up to 20 years in prison, three years of supervised release, and fines up to $250,000. The case is being prosecuted by the U.S. Attorney’s Office for the District of Massachusetts with assistance from state insurance regulators and fraud investigators.