Georgia Insurance Owner Sentenced for Bankruptcy Violations

A Georgia insurance company owner has been sentenced to eight months in prison after prosecutors said he lied in bankruptcy court and on his federal tax returns.

Jacques Andres Frym, 53, who owned businesses in the Savannah area, pleaded guilty last year to lying under oath about his income. Frym at one time owned Federal Employee Benefits LLC, an insurance company, along with real estate and other interests, federal court records show.

In 2016, Frym filed for Chapter 11 bankruptcy protection to manage more than $5 million in debt. But he falsely testified that he performed no work for and had no income from Federal Employee Benefits, according to the charging information sheet.

“In fact, the defendant knew that he sold, and was the primary individual responsible for selling, insurance contracts on behalf of Federal Employee Benefits,” prosecutors noted in the filing.

He also understated his income on his 2017 tax return, court records show.

In addition to jail time, Frym must also pay $112,000 in restitution and a $30,000 fine. Once released, he will face three years of supervised release, the federal court said.

Topics Georgia Employee Benefits