North Attleboro Insurance Broker Charged with Fraud
Bruno Francis Ragusa, a 53-year-old self-employed insurance broker from North Attleboro, Massachusetts, has been charged in federal court in Rhode Island with executing a fraudulent scheme to obtain tens of thousands of dollars in commissions from Great Western Insurance Company (GWIC), an Iowa-based life insurance carrier. Ragusa allegedly used his clients’ personal identity information to sign them up for end-of-life insurance policies and draw money from their bank accounts to pay for the unauthorized policies. He has been charged with wire fraud, identity theft, and aggravated identity theft, respectively, in violation of Sections 1343, 1028(a)(7), and 1028A of Title 18 of the United States Code.
Details of the Alleged Scheme
According to court documents and the affidavit filed by Special Agent Lisa A. Crandall of the FBI, Ragusa, through his company Atlantic Coast Senior Solutions, Inc., “fraudulently obtained sales commissions by affixing the electronic signatures and other personal identity information of clients, without their knowledge or permission, on insurance policy applications and payment authorization forms for policies they did not request or authorize.” The affidavit states that Ragusa had been obtaining client personal identification information, including names, dates of birth, home addresses, telephone numbers, and social security numbers when he had previously submitted other insurance applications with their permission. He then allegedly used this information to submit fraudulent applications and authorization forms to GWIC.
An FBI review of records provided by Massachusetts insurance fraud investigators and GWIC revealed that between December 5, 2022, and February 9, 2023, Ragusa electronically submitted nearly 150 insurance policy applications to GWIC, some just 15 minutes apart. The investigation also uncovered that some of the applications were submitted in the names of deceased individuals. When contacted, the living “applicants” stated that they were unaware of the policy applications and had not authorized Ragusa to submit the applications or payment authorization forms on their behalf.
Emergency Finding and License Revocation
Prior to conducting a hearing on Ragusa’s license by the Rhode Island Department of Business Regulation, the Director of the department issued an Emergency Finding on August 7, 2023, summarily suspending his producer’s license.
The finding stated that Ragusa presented a threat to the public welfare if he were to continue holding an insurance producer license. The department believed that Ragusa was opening fraudulent policies on behalf of consumers without their knowledge or permission. The finding cited eleven phone calls to insurers where consumers stated that they had not authorized or were even aware of the insurance policies obtained by Ragusa on their behalf. Additionally, the department had received two consumer complaints within the last year against Ragusa, alleging that they had not authorized nor were they aware of insurance obtained by Ragusa on their behalf.
Ragusa appears pro se on his license revocation hearing
After the summary emergency suspension, the Rhode Island Department of Business Regulation held a hearing on revoking Ragusa’s producer’s license. Ragusa represented himself at the hearing.
On November 27, 2023, a hearing officer, after taking testimony from witnesses, issued a decision recommending that Ragusa’s Rhode Island insurance producer license be revoked. The hearing officer found that the department had proven “numerous instances where [Ragusa had] signed insurance applications in the names of people who had no knowledge of the applications, had not authorized them, and did not want to purchase the insurance.” The hearing officer noted that Ragusa “forged his clients’ signatures and used personal information he had in his possession from prior purchases of insurance for his clients to make unauthorized purchases of insurance for them.”
On November 28, 2023, by order of the Director of the Rhode Island Department of Business Regulation, the hearing officer’s decision and recommendation were adopted, resulting in the revocation of Ragusa’s license to sell insurance in Rhode Island. However, his licenses to sell insurance in Massachusetts and Connecticut remained active.
Financial Impact and Commissions
GWIC records show that Ragusa received $134,660.90 in advanced commissions and $2,295.66 in additional commissions. Due to early policy cancellations, Ragusa owes GWIC $70,379.47.
On November 28, 2023, the Department of Business Regulation for the State of Rhode Island revoked Ragusa’s license to sell insurance in Rhode Island. However, his licenses to sell insurance in Massachusetts and Connecticut remain active.
A potential minimum mandatory sentence of two years for aggravated identity theft
On the wire fraud charges, Ragusa theoretically faces up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 on each count. The identity theft charges are punishable by up to 3 years in federal prison for the first offense and up to 5 years for subsequent offenses. However, the charge of aggravated identity theft is punishable by a mandatory minimum sentence of imprisonment for two years.
However, notwithstanding the maximum punishments allowed, Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Prosecution and Investigation
The case is being prosecuted by Assistant United States Attorney Milind M. Shah, and the matter was investigated by the FBI, with assistance from the United States Attorney’s Office for the District of Massachusetts, and the North Attleboro Police Department.
