Former Frankel Associate Pleads Guilty

Gary Atnip, an accountant who allegedly helped former financier Martin Frankel skim $200 million from insurance companies in five states, pleaded guilty in federal court to charges of money laundering and conspiracy. According to the Associated Press, Atnip served as the CFO of various insurers acquired by Frankel from 1991 to 1999.

Atnip allegedly admitted helping transfer from the companies some $200 million that ultimately ended up in Frankel’s private Swiss bank accounts. He also confessed to hiding Frankel’s involvement from federal and state regulators.

Prosecutors said Atnip made $1 million for his involvement in the scheme.

In May, Frankel pleaded guilty to defrauding insurance companies in Tennessee, Mississippi, Arkansas, Missouri and Oklahoma. Between $70 million to $80 million has been recovered, including $30 million from a Swiss bank account, according to prosecutors.

Atnip, who was to go to trial in about three weeks, could serve up to 40 years in prison for his alleged infractions. However, prosecutors are reportedly seeking a term of up to 10 years in prison and a restitution payment of over $200 million.