Agent Pleads Guilty in Attempted Fraud Against Prudential, Aviva

A New York City insurance agent has pleaded guilty to attempting to defraud two life insurance companies in a scheme involving applications for multimillion-dollar policies, New Jersey officials said.

Pape Michael Seck pleaded guilty to two counts of second-degree insurance fraud before Hudson County, N.J. Superior Court Judge Joseph V. Isabella, New Jersey Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor said in a statement.

Under the plea agreement, the state will recommend that Seck be sentenced to three years in state prison. He also must give up his license as a New Jersey insurance agent and pay a $10,000 civil fine.

The investigation by the Office of the Insurance Fraud Prosecutor showed Seck, acting as an insurance agent, applied for life insurance policies from Prudential Life Insurance Co. and Aviva Life Insurance Co. in the amount of $7 million each, the statement said.

Bob DeFillippo, a spokesman for New Jersey-based Prudential Financial (NYSE: PRU), declined to comment on the case.

In a statement, the Iowa-based Aviva USA said it "takes seriously any attempts to defraud our company and cooperated fully with this investigation." Aviva USA is a unit of Aviva plc based in the United Kingdom.

Seck admitted he submitted false applications to Prudential and Aviva for the policies on behalf of Mansour Seck, listing Pape Seck as Mansour Seck's son and the beneficiary under the policies. However, his father, whose name is Mansour Seck, didn't apply for the life insurance, nor did anyone by that name.

In filing the applications, the defendant also used identifying information, including a Social Security number, from two other real people named Mansour Seck, the investigation showed. One is a retired dignitary from Senegal in Africa and the other a New Jersey resident. Mansour Seck is a common name in the country of Senegal, the officials said.

Neither insurance company issued a policy.

Isabella scheduled sentencing for June 7.

Acting Insurance Fraud Prosecutor Riza Dagli commended Prudential and Aviva, as well as U.S. Immigration and Customs Enforcement, and investigator Linda Gleghorn from the Department of Banking and Insurance for their help in the probe.

Prudential Insurance Company of America currently has a Best's Financial Strength Rating of A+ (Superior). Pruco Life Insurance Company of New Jersey, a member of Prudential of America Group, also currently has a Best's Financial Strength Rating of A+ (Superior).

Aviva Life & Annuity Company of New York, a member of Aviva USA Group, currently has a Best's Financial Strength Rating of A (Excellent). Aviva Life & Annuity Co., also a member of Aviva USA Group, currently has a Best's Financial Strength Rating of A (Excellent).

(By Fran Matso Lysiak, senior associate editor, BestWeek: [email protected])