(Washington, DC) — The District of Columbia Department of Insurance, Securities and Banking (DISB) joined the US Attorney for the District of Columbia, the Federal Bureau of Investigation’s Washington Field Office and the US Department of Labor Office of the Inspector General’s Office of Labor Racketeering & Fraud Investigations in announcing that District resident, Roscoe Grant Jr., 58, was sentenced February 17, 2011, to three years in prison on charges stemming from an insurance fraud scheme.
“I am pleased with this sentence,” said DISB Acting Commissioner William P. White. “It sends a clear message that DISB will not permit any person to defraud District residents or businesses, and we will take every step to investigate the fraud, and ensure the person pays for the crime. This sentence also shows that we have a partner in the District courts, which are handing out stiffer penalties for insurance fraud.”
DISB is in the process of taking action against Grant’s insurance license. A former Ward 7 Advisory Neighborhood Commissioner and retired DC government employee, Grant was convicted in October 2010 by a jury in US District Court for the District of Columbia for conspiracy, mail fraud, aggravated identity theft, and insurance fraud. He was sentenced by Judge Ricardo M. Urbina, who ordered that Grant be placed on three years of supervised release upon completion of his prison term. During that time, he is to serve 100 hours of community service, and is ordered to pay $33,316 in restitution.
The evidence at the trial established that between December 2004 and February 2006, Grant conspired with others to defraud Transamerica Life Insurance Company. He obtained a false life insurance policy in the name of his brother, who was in failing health, listing himself as the sole beneficiary. The defendant made false representations to Transamerica about his brother’s employment status, and his ability to work; and also forged his brother’s signature to an insurance application form. Grant’s brother died from his illness in July 2005.
After his death, Grant helped generate false documents to convince Transamerica that his brother had worked for a company with a Transamerica group life insurance policy, and was thereby eligible for insurance. Based on these false representations, Transamerica paid the defendant more than $33,000 in insurance benefits.
In announcing the sentencing, Acting Commissioner White praised the joint investigative efforts by DISB staff, and the federal law enforcement officers.
“I would like to commend DISB’s Senior Financial Fraud Investigator Carl Ditchey in the Enforcement and Consumer Protection Bureau for his Herculean efforts in investigating this case,” Acting Commissioner White added. “The partnership between DISB and the federal law enforcement shows our combined commitment to preventing, detecting and prosecuting financial-services fraud, which will directly benefit the residents and businesses of the District of Columbia.”