Feds: Employee Benefit Solutions, Connecticut firm, defrauded clients of $40M

Anthony Riccardi, 46, defrauded clients of $40 million that he spent over five years on boating, golf and luxury cars, the U.S. Department of Justice said in a news release.

According to the DOJ, Riccardi's firm, Employee Benefit Solutions, managed health care claims for its clients. However, Riccardi funneled money from clients intended to pay out the health care claims into an EBS account, the DOJ said.

"Anthony Riccardi admitted today to leading a brazen, widespread scheme," U.S. Attorney Damian Williams said in the news release.

Court documents said that by mid-2017, "EBS buckled under mounting outstanding fiduciary obligations." To pay for these claims, Riccardi perpetuated his crime by applying for fraudulent bank loans and merchant cash advances, the DOJ said. EBS received millions of dollars in loans, the DOJ said.

Riccardi pleaded guilty to one count of conspiring to commit wire fraud and bank fraud, according to court documents. He faces up to 30 years in prison when he's sentenced June 30. He also agreed to pay $14.9 million in restitution and forfeit $2 million, court documents show.