Pennsylvania Man Sentenced to Prison for $1.4 Million Insurance Fraud Scheme (Department of Justice)

Pennsylvania Man Sentenced to Prison for $1.4 Million Insurance Fraud Scheme

Thursday, January 30th, 2025 Fraud Insurance Industry Litigation Risk Management

James Keating, a 52-year-old Pennsylvania resident, has been sentenced to 20 months in prison for orchestrating a fraudulent scheme that cost his former employer, Allied World Insurance, over $1.4 million. Keating, who worked as an Assistant Vice President and surety bond claims handler, used shell companies to bill for non-existent claims work and collected kickbacks from vendors. His fraudulent activities spanned from 2017 to 2021, during which he funneled nearly $1 million through American Construction & Industrial LLC, secured over $350,000 in kickbacks via Surety Risk Solutions, and profited an additional $125,000 through Kodiak Asset Recovery.

U.S. District Judge Victor A. Bolden also ordered Keating to pay $1,226,603.97 in restitution, accounting for the total losses minus partial repayments made in a civil judgment. Keating pleaded guilty to wire fraud in July 2024, and his sentencing took place in New Haven, Connecticut.

The FBI investigated the case, and Assistant U.S. Attorney David E. Novick prosecuted. Keating’s scheme exploited his position in the insurance industry, demonstrating the risks of internal fraud and the importance of oversight in claims handling. His conviction underscores the federal government’s commitment to prosecuting financial fraud within the insurance sector.


External References & Further Reading
https://www.justice.gov/usao-ct/pr/pennsylvania-resident-who-defrauded-allied-world-insurance-company-sentenced-prison
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