Source: Federal Bureau of Investigation (FBI) State Crime News
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that JAMES KEATING, 52, of Paoli, Pennsylvania, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 20 months of imprisonment, followed by three years of supervised release, for defrauding his former employer of more than $1.4 million.
According to court documents and statements made in court, Keating was an Assistant Vice President and surety bond claims handler at Allied World Insurance Company (“Allied World”). He later served in the same capacity at Crum and Forster subsidiary U.S. Fire Insurance Company, where he also handled claims on Allied World surety bonds. All surety bond claims were handled through Allied World’s offices in Farmington, Connecticut.
Between 2017 and 2021, Keating defrauded Allied World in two ways. First, he used a shell company, American Construction & Industrial LLC, to bill Allied World for unnecessary claims work that was not performed and took the proceeds for himself. Second, he solicited and received kickbacks from Allied World vendors through another Keating-owned company, Surety Risk Solutions (also known as “SRS” or “SR5”), without the knowledge of his employer. Keating also caused these vendors to use another company in which he had an undisclosed ownership interest, Kodiak Asset Recovery, for asset searches at vastly inflated prices. Keating profited nearly $1 million through American Construction & Industrial LLC, more than $350,000 in kickbacks through Surety Risk Solutions, and nearly $125,000 through Kodiak Asset Recovery.
Judge Bolden ordered Keating to pay restitution of $1,226,603.97, which represents the loss to Allied World of $1,446,491.95, less $219,887.98 that he previously repaid as part of a civil judgment.
On July 30, 2024, Keating pleaded guilty to wire fraud.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David E. Novick.