PA man who defrauded CT insurance company sentenced to 20 months in prison, feds say

Hana Ikramuddin, New Haven Register, Conn.New Haven Register

Jan. 28—NEW HAVEN — A Pennsylvania man was sentenced in New Haven Tuesday to 20 months in prison and three years of supervised release for defrauding a Connecticut-based insurance company out of more than $1.4 million.

James Keating, 52, of Paoli, was also ordered to pay $1,226,603.97 in restitution to the Allied World Insurance Company, which handles bond claims in its Farmington offices, acting U.S. Attorney for the District of Connecticut Marc Silverman said in a news release.

Keating pleaded guilty to wire fraud July 30, 2024, Silverman said.

Silverman said Keating has already paid $219,880 in restitution as part of a civil judgement.

Keating was an assistant vice president and surety bond claims handler at the company, and he later served in the same capacity U.S. Fire Insurance Company, a subsidiary of Crum and Forster, where he also handled claims on Allied World surety bonds, Silverman said.

According to Silverman, Keating used a shell company, American Construction & Industrial LLC, to bill Allied World for unnecessary claims work that was not performed, and he was able to profit nearly $1 million through the LLC, Silverman said.

Keating also solicited and received kickbacks from Allied World vendors through Surety Risk Solutions, another company he owned, without informing his employer, which allowed him to profit more than $350,000, Silverman said.

"Keating also caused these vendors to use another company in which he had an undisclosed ownership interest, Kodiak Asset Recovery, for asset searches at vastly inflated prices," Silverman said, which allowed Keating to take in close to $125,000.