Insurance Broker in End-of-Life Policy Fraud Looking at 12-18 Months
North Attleboro Insurance Broker Pleads Guilty
A 53-year-old insurance broker, Bruno Francis Ragusa, from North Attleboro, Massachusetts, pleaded guilty to committing wire fraud in the United States District Court in Providence on June 20, 2024.
The guilty plea followed an investigation that uncovered a scheme targeting Great Western Insurance Company (GWIC) and multiple clients by falsifying applications for end-of-life insurance policies. See Agency Checklists’ April 1, 2024 article, “North Attleboro Insurance Broker Charged with Fraud.”
As per court records, Ragusa acknowledged submitting applications for final expense life insurance policies in his clients’ names without their awareness or consent. These policies, intended to cover expenses related to end-of-life arrangements like embalming, burial, cremation, and funeral services, were issued by GWIC, an insurance provider based in Iowa.
Unveiling of the Scheme
The FBI’s investigation found that from December 5, 2022, to February 9, 2023, Ragusa carried out a scheme involving:
Completing applications for expense policies using clients’ personal identification details without their approval.
Counterfeiting clients’ electronic signatures on these applications.
Redirecting all policy-related communication to himself instead of to his clients.
Generating unauthorized payment authorizations utilizing clients’ bank account information.
Submitting applications and payment authorizations to GWIC, leading to the withdrawal of funds from his clients’ bank accounts through wire transfers.
Receiving sales commissions from GWIC for policies issued based on these applications.
Overall, Ragusa confessed to sending over 50 expense policy applications and payments to GWIC between December 5, 2022, and February 9, 2023. This deceitful act resulted in the collection of at least $136,956.56 in sales commissions.
Ragusa’s Plea Agreement with the U.S. Attorney
Under a plea agreement with the U.S. Attorney’s Office, Ragusa agreed to plead guilty to a single count of wire fraud.
The plea agreement stipulated that Ragusa:
Waived presenting the case before a grand jury and agreeing to be charged with one count of wire fraud by way of a criminal information filed by the U.S. Attorney.
The prosecution promised to recommend a sentence between 12 and 18 months of imprisonment. However, Ragusa retained the right to advocate for a sentence of 12 months and one day or more, but not less. He is also allowed to present arguments to the Court at sentencing for any combination of release and fines that he believes is suitable under the terms of the plea deal.
Ragusa has acknowledged his responsibility to pay restitution to GWIC, ranging from $70,379.47 to $136,956.56, with a potential for amounts owed to others.
In return for Ragusa’s plea, the government has agreed not to pursue charges related to the offenses in this case, including potential charges of identity theft and aggravated identity theft that carry heavier penalties than the charge he pleaded guilty to.
The Agreed Facts under the Plea Agreement
Key details admitted by Ragusa as part of the plea agreement include:
His being authorized to sell expense life insurance policies from January 2019 until February 24, 2023, issued by GWIC and other providers.
He fraudulently earned sales commissions through an application scheme during this time period.
Agreeing that between December 5, 2022, and February 9, 2023, he submitted more than 50 fabricated expense policy applications and payment authorizations in the names of over 50 different clients to GWIC.
He misused the personal information of an individual in Rhode Island to make an application on December 9, 2022. This led to a transfer of funds from this individual’s bank account in Rhode Island to GWIC’s account in Iowa.
The prosecution made the decision to pursue the last charge of aggravated identity theft as part of the plea deal. Being convicted of aggravated identity theft carries a mandatory two-year prison sentence imposed consecutively with any other sentence.
Sentencing and the Final Decision on Punishment
Ragusa is set to be sentenced on September 9, 2024. The sentencing will be carried out by a U.S. District Court Judge.
Although the prosecution recommends a sentence ranging from 12 to 18 months as per the plea agreement, the final decision lies with the district judge, who will take into account factors including the U.S. Sentencing Guidelines.
The maximum penalties for wire fraud can include imprisonment for up to 20 years, a fine of $250,000, and supervised release for three years.
The Prosecution Team
The case was handled by Assistant United States Attorney Milind M. Shah. The investigation was conducted by the FBI with support from the United States Attorney’s Office for the District of Massachusetts and North Attleboro Police Department.
