Joint Investigation Leads to Boston Man Charged in Large-Scale Insurance Fraud Scheme
Des Moines, Iowa - On December 12, 2019, Ming Xun Zheng (a.k.a. Kellerman Jason Zheng) was charged by federal authorities in the District of Massachusetts with one count of Mail Fraud and one count of Wire Fraud after allegedly applying for over $11.5 million in life insurance and accidental death coverage on his deceased brother.
The investigation into Zheng’s actions began following a complaint made to the Iowa Insurance Division’s Fraud Bureau in late 2018 by an Iowa domiciled insurer. This complaint alleged that Zheng had filed a claim against a term life insurance policy seeking a one million dollar payout as a result of the death of his brother. Further investigation by the Iowa Insurance Division’s Fraud Bureau discovered over twenty insurance companies who received fraudulent applications for life insurance insuring the life of Zheng’s previously deceased brother. Zheng’s insurance claims under these policies exceeded $5 million in claims made across the United States. Zheng placed three of the policies with Iowa domiciled insurance companies. These policies had a combined death benefit amount of $2 million.
Upon developing an understanding of the scope of the scheme, the Iowa Insurance Division’s Fraud Bureau made contact with the United States Postal Inspection Service who worked in cooperation with the Iowa Insurance Division Fraud Bureau as well as the Federal Bureau of Investigation.
“As innovation in underwriting techniques makes the insurance buying process more convenient for consumers, fraudsters will look at ways to take advantage,” Iowa Insurance Commissioner Doug Ommen said.
During the course of the scheme, it is alleged that Zheng obtained falsified records that indicated a different date of death as well as opened bank accounts, applied for a private mailbox, and renewed his brother’s driver’s license in support of the policies. It is also alleged that Zheng intentionally avoided any personal contact during the life insurance underwriting processes in order to avoid exposing his scheme of posing as his deceased brother during the application process. Zheng sought to alter coverage limits to avoid certain underwriting requirements that likely would have exposed his scheme.
“Once funds are paid out, it’s very difficult to get them back from a scammer. Our office appreciates insurers coming forward to report fraud, as early intervention by law enforcement helps stop fraudulent payments,” Ommen said. “I’d like to specifically thank the United States Attorney’s Office in the District of Massachusetts, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service for their efforts and resources to successfully investigate this case.”
The full press release from the United States Attorney’s Office District of Massachusetts can be found here: https://www.justice.gov/usao-ma/pr/boston-man-charged-large-scale-insurance-fraud-scheme
Iowans with information about insurance fraud are encouraged to contact the Iowa Insurance Division’s Fraud Bureau at 515-242-5304.
Note: A criminal charge is merely an accusation and a defendant is presumed innocent until proven guilty.
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