$1.5M Con: Ex-Employee Admits Defrauding CT Insurance Company

James Keating, age 52, of Paoli, Pennsylvania, pleaded guilty to wire fraud in New Haven federal court on Tuesday, July 30.

Prosecutors said Keating – who served as assistant vice president and a surety bond claims handler at Hartford County-based Allied World Insurance Company in Farmington – created a shell company to bill Allied World for unnecessary claims work that was never performed.

Between 2017 and 2021, he also solicited and received kickbacks from Allied World vendors through another shell company without his employer knowing.

As part of his scheme, Keating also convinced vendors to use a third company without disclosing his ownership interest for asset searches at inflated prices, prosecutors said.

In all, he pocketed nearly $1.5 million in illicit funds between the three companies.

Keating faces up to 20 years in federal prison. As part of his guilty plea, he agreed to pay more than $1.2 million in restitution.