NYC Asset Diversion Lawyers
Asset diversion is considered fraud, and it happens when an insurance company’s assets are diverted. Premium payments provide funds for insurers, and those funds are supposed to go to the claims of policyholders. This doesn’t always happen, though, and sometimes those funds go elsewhere. When the funds or assets are diverted, the insurance company will not be able to meet their responsibilities, and they will go bankrupt. At times, policyholders may be protected by the state guarantee fund.
Asset diversion negatively impacts the state, shareholders and policyholders, which is why it’s such a serious crime with steep penalties. If you’ve been charged with asset diversion, it’s important that you contact an experienced attorney immediately. If you’re under investigation, your life and the well-being of your family are at risk; a lawyer will be able to help you fight back. It’s also important to understand that any type of involvement in asset diversion can put you at risk. If you’re not sure whether or not you need a defense lawyer, setup a free consultation today.
Asset Diversion Explained
The FBI uses the term “asset diversion” in regards to the theft of an insurance company’s assets. In this type of theft, the premiums are paid to the insurance company, but they’re then either stolen or diverted. This means that the policyholders’ claims go unpaid, and it can leave the insurance company bankrupt and unable to meet their obligations.
Asset diversion often occurs when an insurance company is either acquired by another company or when it merges with another insurance company. In order to acquire part of or the entire insurance company, borrowed money is used. Then, in order to pay back that borrowed money, the assets from the newly-formed insurance company are used. If there are any assets left over, they’re diverted to the company that purchased the other insurance company. It’s also possible that, throughout this process, the insurer will continue to generate more premiums, and that those funds will also be diverted.
It’s important to hire a lawyer who has extensive experience in this type of fraud. Health insurance and life insurance providers are both at risk, along with many other types of insurers. There are also all different ways to be involved in or impacted by this type of scheme, including by applying for a loan, coming up with the diversion plan, or being the person who diverts the assets. Even if you didn’t do anything directly, you can be considered a co-conspirator.
Penalties for Asset Diversion
Asset diversion fraud can result in both federal and state charges; the exact charges you face will depend on the specific diversion scheme. If there was an attempt made to get either property or money from a healthcare insurance company, and if false statements were used to acquire those assets, law 18 U.S.C. section 1347 will apply. Should bodily injury be one of the results of the fraud, there’s a maximum prison sentence of 20 years.
Also, the nature of asset diversion fraud means that there are additional charges you could face, both on a state and a federal level. You may be charged with mail and wire fraud, money laundering or bank fraud, for example. It’s important to hire a lawyer who doesn’t just have experience with asset diversion cases, but who can also represent you in the other types of charges you may be facing. You’ll need representation if you’re facing charges from the state or the federal government, or if you’re in a civil case with policyholders, shareholders or government agencies.
Contact an Asset Diversion Lawyer
Asset diversion fraud, and any associated charges, is incredibly complex, which is why you need an experienced and dedicated lawyer on your side. These types of cases can be very hard for the prosecution to prove, as it’s not always easy to establish a clear and relevant paper trail. Hiring a lawyer early on means they can immediately begin to block any attempts that are made against you. The goal is to avoid conviction or to get you the least serious sentence or penalty possible.
Mar 31, 2020
May 17, 2018
Spodek Law is a great firm. They are super pragmatic