Pelham man charged with mail, wire fraud

Jul. 27--CONCORD, N.H. -- A Pelham man has been charged with five counts of mail fraud and five counts of wire fraud, according to U.S. Attorney Scott Murray.

Leo Rush, 77, managed the business activities of Newport Insurance Co. Inc., which was not licensed to sell insurance in any state, Murray said.

The indictment, unsealed Friday, alleges that Rush sold Newport Insurance surety bonds for construction projects in several different states.

The indictment also alleges that Rush knew that these bonds were fraudulent and illusory because the company was not a licensed insurer and did not have the financial ability to make payments equal to the amount of the bonds.

Rush appeared in U.S. District Court on Friday and pleaded not guilty. His trial date has not been set.

The case is being investigated by the New Hampshire Insurance Department and the Federal Bureau of Investigation.

Assistant U.S. Attorney Robert Kinsella is prosecuting the case.

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