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The vice-president of an insurance underwriting group has been charged with fraudulently obtaining over $13.5 million from a corporate client.
According to federal criminal charges filed by the US Attorney’s Office in Chicago, David Ballard deceptively pocketed the money from a client by issuing and claiming fraudulent premium payments on “matching deductible” policies.
Ballard, 54, was in charge of administrating the Pennsylvania account of a large healthcare company. However, between 2005 and 2016, he allegedly issued “matching deductible” insurance renewal policies that his employer did not authorize, information filed in US District Court in Chicago stated.
He submitted falsified estimates, invoices, binder letters and policies to the healthcare company that outlined the supposed terms of coverage, the charges allege. The premium payments Ballard received from the false policies were then allegedly diverted to a shell company that he controlled. According to the charges, Ballard pocketed more than $13.5 million through his scheme, which he used for personal expenses – credit card bills, luxury dinners, travel costs, and even real estate for himself and his family.
A release from the United States Department of Justice said that Ballard has been charged with one count of wire fraud, which is punishable by up to 20 years in prison. The arraignment in US District Court in Chicago has not yet been scheduled.
