A former Minnesota insurance broker has been charged with fraud for allegedly inventing customers and fake Social Security numbers to earn nearly $650,000 in improper commissions.
Kevin Anthony Meyers, 48, allegedly submitted hundreds of policy applications from fictitious customers while working for Cigna Corp. from 2018 to 2020, according to charges filed in Ramsey County District Court.
Under the terms of his employment, Meyers was eligible for commissions even before customers paid premiums. The Commerce Fraud Bureau investigation found that 401 life insurance policies he claimed to have sold from May 2018 to June 2019 never generated a premium payment to Cigna, and some of the Social Security numbers on the policies did not exist or belonged to people who had died.
Meyers allegedly used the fraudulent commission payments to buy cars, airline tickets, and for shopping. His bank records show he paid $76,000 to a Jaguar Land Rover dealer and withdrew more than $100,000 in cash. Under terms of a civil consent order filed by Commerce in March, Meyers must repay $648,000 to Cigna within five years. The Department of Commerce, which licenses insurance brokers in Minnesota, revoked his insurance license retroactively and imposed a civil penalty of $100,000, which will be waived when he repays Cigna.
Some of his supposed customers told investigators they knew Meyers but had not purchased insurance from him. Meyers, whose office was in Vadnais Heights, also earned commissions after reporting sales to employees of a company called Synergy Benefits Solutions. Investigators determined that Meyers was the sole owner of Synergy.
The charges against Meyers include six felony counts of fraud, theft by swindle and identity theft. The most serious counts carry a sentence of up to 20 years in prison and a fine of $100,000. Meyers’ first appearance in Ramsey County District Court is set for Oct. 10.
“We are grateful for the hard work of the Minnesota Department of Commerce fraud investigators to bring this case forward to our office,” Ramsey County Attorney John Choi said. “The burden of this type of fraud is shouldered by the public through increases in insurance rates, and the law enforcement focus on uncovering this type of financial fraud is our priority.”
Source: Minnesota Department of Commerce
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