A federal appeals court on Wednesday ordered the resentencing of a former Kentucky executive convicted in an insurance fraud case but upheld a 10-year sentence for the company’s CEO.
The U.S. 6th Circuit Court of Appeals found that the judge who reduced the sentence of former Kelco Inc. vice president Grant Sutherlin may have relied too much on Sutherlin’s good behavior in jail. U.S. District Judge Karl Forester reduced Sutherlin’s sentence from 12 years, seven months to four years. The court vacated the sentence at the request of the government.
The court also dismissed an argument from Kelco CEO Stephen Keller that his sentence was “procedurally and substantially unreasonable.”
Keller also must serve an additional 20 months for fleeing to Panama with his family in 2003 in an unsuccessful attempt to avoid going to prison.
The government charged that Kelco helped seriously ill people obtain life insurance policies without telling the insurer about their illnesses. Kelco bought the policies for resale to investors who were then at risk of losing their money if the insurer discovered the fraud.
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