Man, 53, pleads guilty to defrauding major insurer in Farmington: Federal government

FARMINGTON, CT — A Pennsylvania man pleaded guilty in federal court Tuesday to defrauding a global insurer through its Farmington office.

James Keating, 52, of Paoli, Pennsylvania, has pleaded guilty in federal court in New Haven to a felony charge stemming from a fraud scheme against his former employer, according to Vanessa Roberts Avery, the U.S. attorney for Connecticut.

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According to court documents and statements made in court, Keating was an assistant vice president and claims handler at Allied World Insurance Co. (“Allied World”).

He later held the same position at U.S. Fire Insurance Co., a subsidiary of Crum and Forster, where he also handled claims on Allied World sureties, officials said.

All surety bond claims were handled through Allied World’s Farmington offices located at 1690 New Britain Ave., Unit 101, Farmington.

According to authorities, Keating defrauded Allied World in two ways between 2017 and 2021.

He first used a shell company, American Construction & Industrial LLC, to bill Allied World for unnecessary claim work that wasn’t done and kept the proceeds for himself, Avery said.

Second, he received bribes from Allied World suppliers through another of Keating’s companies, Surety Risk Solutions, without his employer’s knowledge, she said.

Keating also arranged for these sellers to use another company, Kodiak Asset Recovery, in which he had an undisclosed ownership interest, to search for assets at inflated prices, authorities said.

Keating made nearly $1 million through American Construction & Industrial LLC, more than $350,000 in bribes through Surety Risk Solutions and nearly $125,000 through Kodiak Asset Recovery, Avery said.

Keating pleaded guilty to one count of wire fraud, which carries a maximum prison sentence of 20 years.

He has agreed to pay $1,226,604 in damages, representing Allied World’s $1,446,491.95 loss, minus $219,888 he previously repaid as part of a civil judgment, Avery said.

Keating is being released on $100,000 bail pending sentencing, which has not yet been determined.

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