Frankel Offers Guilty Plea

May 16, 2002

Martin Frankel, who faced charges for his reported defrauding of more than $200 million from insurance companies in five states, pled guilty in a Connecticut courtroom May 15, according to reports in the Associated Press and Wall Street Journal.

Frankel, who was indicted on more than 30 counts, allegedly obtained control of small insurance businesses in five states—Arkansas, Mississippi, Missouri, Oklahoma and Tennessee—then stole cash from company reserves in the last decade. Frankel reportedly took the money and spent it on private indulgences, including planes, cars and gifts for others. He faces the possibility of up to 150 years behind bars.

The trail doesn’t end there, however, as four other individuals are also charged as co-conspirators, including a pair of aides, and accountant, and a monsignor with connections to the Vatican.

Msgr. Emilio Colagiovanni is charged with wire fraud, along with conspiracy to commit money laundering.

Commissioners from the five states where Frankel allegedly stole money have filed a federal lawsuit, charging the Vatican and Colagiovanni with racketeering and fraud.

The Vatican has indicated it had no involvement in the alleged crimes.

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