AFLAC Agent Indicted For Identity Theft And Larceny in Insurance Fraud Scheme
Charges Announced Against Boston Resident
On April 19, 2024, the Massachusetts Attorney General’s Office announced charges against Richard N. Martell, a former American Family Life Assurance Company of Columbus (AFLAC) insurance agent, for his involvement in an insurance fraud scheme. Martell, a Boston resident, faces one count of Identity Theft and one count of Larceny over $1,200. He was arraigned in Suffolk Superior Court on April 8, 2024, where he pleaded not guilty to all charges.
Allegations of Identity Theft
According to the Commonwealth’s Statement of the Case, between April 2018 and November 2019, Martell allegedly created more than 270 fake insurance policies using the personally identifiable information of 64 individuals without their consent or knowledge. Martell entered false statements on policy applications, including applicants’ employment details, addresses, phone numbers, email addresses, initials, and signatures. Investigators found that at least two addresses and email addresses used on the falsely submitted applications were linked to Martell.
Martell’s Efforts to Conceal Fraudulent Activities
Martell allegedly established AFLAC payroll accounts for small businesses across Massachusetts without the company owners’ knowledge. By disguising his voice, he impersonated more than 30 company representatives during recorded account authorization phone calls. Martell changed company mailing addresses to an address he controlled to minimize the detection of his fraudulent activities.
Investigation and Uncovering of the Scheme
AFLAC discovered the fraudulent activity and notified the Massachusetts Insurance Fraud Bureau. The Bureau’s investigation confirmed that many victims were unaware that their personally identifiable information had been used without their consent. Some business owner victims had previously used Martell’s services as an accountant or bookkeeper but maintained they had never solicited insurance from him or consented to the creation of AFLAC accounts or policies.
Unearned Commissions and Financial Gain
AFLAC paid commissions to Martell for the fraudulent policies, relying on his false statements and misrepresentations. As a result of this scheme, Martell collected approximately $45,000.00 in unearned sales commissions, which were deposited into his Bank of America and Eastern Bank accounts.
Potential Penalties for Identity Theft and Larceny
Under Massachusetts General Laws Chapter 266, Section 37E, the penalty for Identity Theft includes a fine of up to $5,000 or imprisonment in a house of correction for not more than 2.5 years, or both. Larceny over $1,200, as per Massachusetts General Laws Chapter 266, Section 30, carries a potential penalty of imprisonment in the state prison for not more than 5 years or a fine of up to $25,000 and imprisonment in jail for not more than 2 years.
Martell’s Release and Upcoming Court Date
Following his arraignment, Martell was released on personal recognizance and ordered to have no contact with alleged victims and witnesses. He is next due in court for a pre-trial conference on May 20, 2024. No trial date has been set yet.
The prosecution team
The prosecution team handling this case includes Division Chief Mary H. Nguyen, Assistant Attorney General Emma Kratochvil, Criminal Investigator Patrick Cooney, and Victim Witness Advocate Ceara Tavares, all from the Attorney General’s Insurance and Unemployment Fraud Division. Investigators from the Massachusetts Insurance Fraud Bureau are also working on the case.
