Asset diversion is a type of fraud which occurs when assets of an insurance company are diverted. Insurers get funds from premium payments, and are then required to pay covered claims to policyholders. In the event assets are diverted, the insurance company is bankrupt and cannot meet it’s obligations. The state’s guarantee fund sometimes will step in, and protect policyholders.
Asset diversion costs policyholders, shareholders, and the state, which is why there’s huge consequences if you’re found guilty of this crime. You need the help of our NYC asset diversion attorneys to protect you, if you’re under investigation. Raiser & Kenniff’s team of experienced criminal attorneys can help you keep your freedom. We have the experience and reputation necessary to ensure your life, and that of your family is protected.
Asset diversion is a term the FBI uses to describe theft of assets which belong to an insurance company. This is a type of theft, where the premiums paid to an insurance company are being diverted/stolen. As a result, claims from policyholders are unable to be paid. Asset diversion typically happens when an insurer is acquired, or when two insurance companies merge. In this scheme, borrowed money is used to acquire an interest in the insurance company. Once the acquisition is completed, debt is paid off using assets from the new company. Any remaining assets the insurance provider owns, is then diverted to the purchasers. In some cases, the insurer will continue to operate and generate additional premiums which continue to be diverted.
Raiser & Kenniff, PC, has experience dealing with asset diversion in the context of insurance companies, including health insurance providers, life insurance providers, and many other forms of insurance. Anyone involved in the scheme, including people who applied for loans, developed the scheme, or directly diverted the assets, can be held as co-conspirators in the insurance fraud crime.
Asset diversion leads to state and federal charges, depending on the scheme. 18 U.S.C. section 1347, is a law that applies when an attempt is made to obtain money/property of a health care benefit program using false statements. If bodily injury occurs as a result of this fraud, then this could result in a maximum sentence of 20 years imprisonment.
Due to the nature of the crime, there are other federal and state crimes you can be charged with, including money laundering, bank fraud, mail and wire fraud, in addition to many other crimes. Raiser & Kenniff, PC, provides legal representation to clients facing both state and federal charges, as well as civil actions by shareholders, policy holders, and government agencies trying to recover funds.
Asset diversion cases are complex. They are difficult for prosecutors to prove, and difficult to establish a paper trail for. It’s crucial you hire us early in the process, so we can stone-wall attempts to build a case against you, by using the law against the prosecution.
We work hard to help clients avoid conviction. Contact us for a risk free consultation.
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