December 17, 2018

Jonas Knopf, former chief executive officer of Madison Financial Services (MFS) and a licensed insurance producer, was charged for his alleged role in conspiring to defraud three Blue Cross Blue Shield health care insurance affiliates of more than $10 million. According to the government, Knopf and others created 11 sham companies under MFS, the parent company. They allegedly claimed to be doing business in the Pennsylvania and Washington, D.C., area and were created for the single purpose of marketing health insurance coverage to people Knopf claimed to be his employees, when in actuality, they were not. The alleged conspiracy began in Pennsylvania in 2009 but was stopped in 2013 after an internal BCBS investigation discovered false information submitted by Knopf and his co-conspirators through the various faux companies. The government charges that Knopf’s “clients,” or fake employees, paid him exorbitant insurance premiums and also provided him with money for payroll. Knopf then issued bogus payroll checks, attempting to create the impression that they were bona fide employees being paid for providing services. The alleged conspiracy continued until January 2017.  DOJ

Tagged in: Financial and Investment Fraud,