Balt. Co. businessman Jeffrey Cohen pleads guilty to fraud charges

June 06--A Reisterstown nightclub insurer who was defending himself in a trial this past week against allegations that he defrauded millions of dollars out of his clients to support a lavish lifestyle pleaded guilty to charges late Friday.

According to the U.S. Attorney's Office, Jeffrey Brian Cohen, 39, pleaded guilty to wire fraud, aggravated identity theft, making false statements to an insurance regulator and obstruction of justice in the federal case that alleged he defrauded clients through his insurance companies.

In opening statements Monday, Cohen -- who represented himself -- called the entire 31-count case against him is a waste of time because there were "no victims" of his actions. He also denied related allegations that he intended to do "physical harm" to two Delaware officials who investigated his company.

According to a release, Cohen admitted in a plea agreement that he obtained and attempted to obtain money from insurance policyholders and potential insurance policyholders of his companies Indemnity-DC and Indemnity based on financial ratings, financial audits and insurance regulatory approvals that he fraudulently obtained.

Between January 2008 and the fall of 2013, Cohen obtained more than $100 million in insurance premiums by falsely representing his financial status through false financial documents, including bank statements, letters of credit, and confirmations of bank account balances, according to the release.

"Jeffrey Cohen carried out a massive fraud scheme for which he finally will be held accountable," U.S. Attorney Rod Rosenstein said in a statement.

Federal officials said Cohen faces a maximum sentence of 20 years in prison for each of the wire fraud and obstruction of justice counts, 15 years for making false statements to an insurance regulator, and a mandatory two years for aggravated identity theft.

He is scheduled to be sentenced Aug. 6.

Baltimore Sun Reporter Kevin Rector contributed to this article.

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