Former MN insurance broker charged with fraud for fake customer scheme
MINNEAPOLIS -- A former Minnesota insurance broker was charged for fraud after an investigation by the Minnesota Commerce Fraud Bureau found he invented fake customers and Social Security numbers.
Charges filed earlier this month at the Ramsey County District Court alleged Kevin Meyers, 48, submitted hundreds of policy applications from fake customers while working at Cigna between 2018 to 2020.
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While Meyers was employed at Cigna, he was eligible for commissions before customers paid premiums, said a press release from the Minnesota Department of Commerce.
During the investigation, officials say they found 401 life insurance polices Meyers claimed to have sold from May 2018 to June 2019 never generated a premium payment to Cigna. Also, some of the Social Security numbers on the policies did not exist or had belonged to deceased people.
Charging papers allege Meyers used fraudulent commission payments to buy cars, airplane tickets and other personal shopping items.
Under the terms of the civil consent order filed by the Commerce Bureau, Meyers is required to repay $648,000 to Cigna over the next five years.
The Department of Commerce has also retroactively revoked Meyers' insurance license and imposed a civil penalty of $100,000. The penalty will be waived when Meyers repays Cigna.
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Meyers office in Vadnais Heights also allegedly earned commissions after reporting sales to employees from a company called Synergy Benefits Solutions. Investigators later discovered Meyers was the sole owner of Synergy Benefits Solutions.
"We are grateful for the hard work of the Minnesota Department of Commerce fraud investigators to bring this case forward to our office," said Ramsey County Attorney John Choi. "The burden of this type of fraud is shouldered by the public through increases in insurance rates, and the law enforcement focus on uncovering this type of financial fraud is our priority."
Meyers has been charged with six felony counts of fraud, theft by swindle, and identity theft. If convicted, Meyers could face up to 20 years in prison and a fine of $100,000. Meyers will appear in court on Oct. 10.
