Florida resident John Thomas has pleaded guilty to wire fraud and money laundering related to the sale of fraudulent insurance policies, gaining over $4.8 million in insurance premium payments.
Between 2013 and 2021, Thomas operated the insurance business Thomas Insurance, LLC. Through this business, he defrauded customers by employing the insurance fraud tactic called premium diversion. Thomas collected insurance premiums from his clients. He then diverted the funds to his personal account instead of creating valid insurance policies. Further, he concealed his illicit acts by providing the clients fake documents about non-existent insurance policies.
US authorities will sentence Thomas on November 29, 2021. He could face up to 20 years in jail for wire fraud, 10 years for money laundering, and 20 years for money laundering to conceal proceeds of illicit acts.
Source: US Department of Justice