Ex-Insurance Executive Sentenced in Wisconsin for Kickback Scheme

A judge in Wisconsin has sentenced a former insurance executive to prison for bilking his firm out of more than $1 million in phony claims. U.S. District Judge Barbara Crabb sentenced Douglas Nickerson to three years and 10 months in prison and ordered him to repay General Casualty Insurance and its insurer more than $1 million.

Nickerson was the former property program manager for General Casualty, a regional insurer headquartered in Sun Prairie, Wis.

The Wisconsin State Journal reported Nickerson carried out a scheme from 2003 to 2008 in which he issued checks for what appeared to be legitimate claims and then received kickbacks from companies.

Nickerson was indicted in June 2009 along with a business associate. According to the indictment, he concealed fraudulent payments in otherwise large, legitimate insurance claim files so they would not attract attention at General Casualty.

Nickerson hand-delivered the checks to three individuals, who were directed to keep a portion of the money and give him the rest, the indictment said.

Nickerson received about $564,000 of the proceeds while the other three individuals received another $259,000, according to the indictment.