A lawyer hailing from Tennessee pleaded guilty Friday to conspiracy and money laundering in an insurance fraud scheme masterminded by Martin Frankel. Frankel allegedly purchased insurance companies in Tennessee, Mississippi, Arkansas, Oklahoma and Missouri under the umbrella of Thunor Trust. He then looted $200 from their coffers.
John M. Jordan, 44, of Nashville, said he helped Frankel and others get control of the insurers. He faces a maximum of 40 years in prison and $750,000 in fines, but is cooperating with prosecutors and under the terms of his plea could be called to testify in related cases.
Martin Frankel pleaded not guilty last week to a string of charges, including fraud. Frankel was arraigned in U.S. District Court in New Haven, Conn., following his extradition on March 2 from Germany, where he served 17 months of a three-year sentence for evading tax on smuggled diamonds and possessing nine passports.
Frankel’s U.S. charges include securities fraud, racketeering and conspiracy. Jury selection has been tentatively scheduled for September. Meanwhile, Frankel is being held without bond at a state prison in Suffield, Conn. Frankel faces 20 years maximum for each count of conspiracy and racketeering charges, five years on wire fraud, 20 years on each money laundering charge and 10 years on the securities fraud charges. Thus far, prosecutors say $30 million in cash and property in the United States has been seized, along with $30 million in assets seized or frozen overseas.
Jordan was one of four Frankel associates named in an indictment. The other three have pleaded not guilty.
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