Eight Sentenced To Federal Prison For $1.2 Million Travel Insurance Fraud Scheme

The following information was released by the U.S. Department of Justice:

Eight individuals have been sentenced to federal prison for their roles in a $1.2 million travel insurance fraud kickback scheme. Each defendant pleaded guilty to conspiracy to commit mail and wire fraud.

Defendant Sentence Restitution

Jennifer Fleener, 60, Indianapolis 57 months' imprisonment; 2 years of supervised release $1,199,149.32

Mike Fleener, 54, Camby 48 months' imprisonment; 2 years of supervised release $1,188,470.58

Asha Mimms, 46, Indianapolis 12 months' and 1 day imprisonment; 2 years of supervised release $365,570.85

Jasmin Aldava Grimes, 44, Martinsville 3 years' probation $788,321.14

Jennifer Thompson, 45, Indianapolis 3 years' probation $604,745.12

Amber McDaniel, 45, Indianapolis 2 years' probation $85,894.94

Christopher Perdue, 38, Indianapolis 3 years' probation $89,403.49

Dasha Pearson, 28, Indianapolis 2 years' probation $42,628.32

According to court documents, beginning in 2016, Jennifer Fleener devised a scheme to submit and approve fraudulent travel-insurance claims through Jennifer's employer, "T.M." T.M., headquartered in Houston with a travel division in Indianapolis, sells short-term travel medical insurance to individuals traveling outside the United States. Jennifer Fleener received money from the fraudulent claims.

Jennifer Fleener worked at T.M. from 2012 to 2021 as a case-management supervisor and claims handler. In this role, she had detailed knowledge of T.M.'s policy-issuance and claims-processing procedures.

In 2016, Jennifer Fleener's ex-husband Mike Fleener joined the scheme and began recruiting individuals, most of whom lived in the Philippines, to participate in the fraud. He recruited Jasmin Aldava Grimes, a Philippine national, who purchased travel-insurance policies from T.M. using her own information and the information of others, despite having no intention of traveling as stated on the applications. When T.M. paid out the fraudulent claims, Grimes shared a portion of the proceeds with Mike Fleener, who in turn provided a portion of the proceeds to Jennifer Fleener. Grimes participated in the scheme for roughly two years and recruited additional participants.

Beginning in 2019, Jennifer Fleener expanded the scheme by recruiting T.M. employees, their families, and associates. She recruited T.M. auditor Asha Mimms, who then recruited her daughter, Dasha Pearson, and associate Amber McDaniel. She also recruited former T.M. employee, Jennifer Thompson. Jennifer Fleener instructed each recruit to purchase insurance policies for themselves or others and then submitted falsified claims. As a claims handler, Fleener approved fraudulent submissions without secondary review. T.M. mailed payout checks directly to the claimants, and the proceeds were divided among the co-conspirators, with Fleener receiving a share.

Christopher Perdue, the husband of Fleener's niece, knowingly allowed his personal information to be used to obtain fraudulent policies and submit false claims. In return, he received a portion of the kickbacks. Perdue also pled guilty to making false statements and false declarations before a federal grand jury. When interviewed by FBI agents about his involvement in the scheme, he lied and denied any knowledge of the conspiracy and later repeated those falsehoods under oath before the grand jury.

In total, the conspiracy was responsible for filing 441 fraudulent claims, resulting in $1,199,149.32 in losses to T.M.

"Fraud schemes of any kind erode trust in programs designed to protect people in times of need," said Tom Wheeler, U.S. Attorney for the Southern District of Indiana. "These defendants abused their positions and exploited legitimate insurance processes for personal gain, resulting in significant losses. Today's sentences reflect our office's commitment to holding accountable those who engage in coordinated, long-running fraud and to protecting businesses and consumers from financial harm."

"Complex fraud schemes often rely on calculated deception and abuse of trust for personal enrichment," said FBI Indianapolis Special Agent in Charge Timothy J. O'Malley. "The FBI, alongside our law enforcement partners, remains committed to uncovering these schemes, following the money, and ensuring those responsible are held accountable under the law."

FBI Indianapolis investigated this case. The sentences were imposed by U.S. District Judge Richard L. Young.

U.S. Attorney Wheeler thanked Assistant U.S. Attorneys Bradley P. Shepard and Meredith Wood, who prosecuted this case.

The post EIGHT SENTENCED TO FEDERAL PRISON FOR $1.2 MILLION TRAVEL INSURANCE FRAUD SCHEME appeared first on Insurance News | InsuranceNewsNet.