Man, 53, Pleads Guilty To Defrauding Major Insurer In Farmington: Feds

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

Vanessa Roberts Avery, U.S. attorney for Connecticut, said James Keating, 52, of Paoli, Pa., pleaded guilty in New Haven federal court to an offense stemming from a fraud scheme against his former employer.

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

He later served in the same capacity at Crum and Forster subsidiary U.S. Fire Insurance Co., where he also handled claims on Allied World surety bonds, officials said.

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

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

First, he used a shell company, American Construction & Industrial LLC, to bill Allied World for unnecessary claims work that was not performed and took the proceeds for himself, Avery said.

Second, he solicited and received kickbacks from Allied World vendors through another Keating-owned company, Surety Risk Solutions, without the knowledge of his employer, she 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, authorities said.

Keating profited nearly $1 million through American Construction & Industrial LLC, more than $350,000 in kickbacks 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 term of imprisonment of 20 years.

He has agreed to pay restitution of $1,226,604, which represents the loss to Allied World of $1,446,491.95, less $219,888 that he previously repaid as part of a civil judgment, Avery said.

Keating is released on a $100,000 bond pending sentencing, which is not scheduled.

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