Tennesse court orders man charged with selling fake insurance products to pay $6 million, serve 14 months

By Marian Johns | Nov 30, 2018

NASHVILLE — A U.S. Department of Labor (DOL) investigation into a Tennessee resident's insurance embezzlement scheme has resulted in a 14 month prison sentence and more than $6 million in restitution by a U.S. District Court. 

According to the DOL's Employee Benefits Security Administration (EBSA), Bart Posey has been ordered by the U.S. District Court for the Middle District of Tennessee to pay $6,524,888 in restitution in addition to serving jail time and 36 months of supervised release for his part in selling fake health insurance products.

The EBSA investigation found that Posey and several others did not receive legitimate underwriting for insurance products he sold and embezzled millions of dollars of insurance premiums which affected more than 17,000 policy holders, the DOL said. According to the DOL, Posey and others used the embezzled funds to buy a sports car, a motorcycle, football tickets and to pay off a half million dollar mortgage.

"Knowingly committing healthcare fraud victimizes hardworking employees and their families," EBSA Atlanta director Isabel Colon said in a statement.  "Posey and his co-conspirators financially devastated hardworking victims who were forced to pay out-of-pocket thousands of dollars in healthcare costs." 

"The U.S. Department of Labor will continue to relentlessly work to hold those who commit these crimes accountable," Colon added. 

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