A Chicago couple has been convicted of scamming the Chicago Housing Authority and several insurance companies by allegedly using proceeds totaling more than $19 million collected as a result of falsified insurance reports for personal gain, according to the Associated Press.
James Skrzypek, 52, and wife Janice, 47, are accused of lying about the number of security guards they employed under their company, Federal Security Co. The guards were purportedly posted at numerous public housing projects.
According to prosecutors, the Skrzypeks subsequently purchased luxury cars, $65,000 in jewelry, a $450,000 home, and a European vacation after filing bogus documents understating the number of employees at work for them to insurance companies, while inflating the number reported to the housing authority. The numbers, dating back to 1991, allowed them to pay lower premiums.
The housing agency lacked resources to verify the staffing of guards due to a mismanaged state in the early part of the decade, which later would be take over by the federal government in 1995.
Skrzypek’s defense team argued that he was unaware of any wrongdoing, and believed the reports submitted to the housing agency were correct. The former deputy sheriff was found guilty on 158 counts, including racketeering, fraud, and money laundering.
His wife, Janice, was convicted of similar charges.
Both face a maximum of 19 years in prison.
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