Barnstable Man Going to Prison for Scheming Small Businesses

A Barnstable man was sentenced to 18 months in prison for his role in a health insurance scheme targeting small businesses.

William O’Brien, of West Barnstable, was convicted last year for his role in the scheme and sentenced this week.

He worked for HMA Direct, which promoted fake, positive references to prospective clients then ”carved out” high-risk employees, meaning they were offloaded to larger insurance companies.

Authorities said they launched their investigation in 2010—at which point company executives shredded documents to hide evidence.

O’Brien was one of six people sentenced this week for their role in the scheme. These are the five others and the length of their prison terms:

• Kevin Brown, of Chinquapin, N.C. (1 year)
• Michael Cassandro, of Middletown, R.I. (8 months)
• Shelley Lenkutis, of Framingham, Mass. (6 months home confinement)
• Francis Gaetani, of Sutton, Mass. (6 months home confinement)
• Ronald Anger, of Sutton, Mass. (4 months home confinement)

All six were also ordered to pay restitution.

The company’s former CEO, Jedediah Brettschneider, of Phoenix, was charged with a host of crimes for allegedly embezzling more than $400,000. Prosecutors said he also used the company’s money to fund his lavish lifestyle, which included an exclusive gold club membership ($86,945); a BMW ($23,049); clothing from Neiman Marcus, including Armani and Zegna apparel ($13,492); cigars ($3,627 over an 18-month period); and a night at the luxury New York Palace Hotel on New Year’s Eve 2009 ($1,077).

Brettschneider is awaiting sentencing.