Boston Agent Charged With Creating Fake Insurance Policies to Collect Commissions

A Boston man has been charged with a fraud scheme in which prosecutors say he collected about $45,000 in unearned sales commissions on insurance policies he created using personally identifiable information stolen from individuals.

The state attorney general’s office announced charges against Richard N. Martell for identity theft and larceny for the scheme he allegedly perpetrated while working as an insurance agent for American Family Life Assurance Co. of Columbus (Aflac).

Martell was arraigned in Suffolk Superior Court on April 8, pleading not guilty to all charges.

Between April 2018 and November 2019, Martell is alleged to have created numerous fake insurance policies to induce Aflac to pay him a sales commission on each policy sold. Martell allegedly established more than 270 insurance policies using the personally identifiable information of 64 individuals, many of whom are Massachusetts residents. These individuals did not consent to the use of their information, did not authorize Martell to issue insurance in their name, and in many instances were not aware that Martell had access to their information, according to prosecutors.

Prosecutors also allege that Martell established Aflac payroll accounts for small businesses across the state without the company owner’s knowledge by impersonating more than 30 business owners during account authorization phone calls.

Aflac notified the Massachusetts Insurance Fraud Bureau, which upon further investigation, confirmed multiple victims’ lack of knowledge of the use of their personally identifiable information.

As a result of the scheme, Martell collected approximately $45,000.00 in unearned sales commissions, according to officials.

Martell is next due in court on May 20 for a pre-trial conference.

Source: Office of the Massachusetts Attorney General