Eight individuals have been sentenced to federal prison for their roles in a $1.2 million travel insurance fraud kickback scheme, according to a July 15 announcement from the U.S. Attorney’s Office for the Southern District of Indiana.
Each defendant pleaded guilty to conspiracy to commit mail and wire fraud. Jennifer Fleener of Indianapolis received 57 months’ imprisonment and was ordered to pay over $1.19 million in restitution. Mike Fleener of Camby was sentenced to 48 months’ imprisonment with similar restitution requirements. Other defendants received sentences ranging from probation to one year and one day in prison, along with orders for restitution.
According to court documents, Jennifer Fleener began the scheme in 2016 while working as a case-management supervisor and claims handler at T.M., an insurance company headquartered in Houston with operations in Indianapolis. She used her position and knowledge of claims-processing procedures to submit fraudulent travel-insurance claims through T.M., receiving payouts from these false submissions.
The conspiracy expanded when Mike Fleener joined by recruiting others, including Jasmin Aldava Grimes, who purchased policies using her own information and that of others without intent to travel as claimed on applications. When fraudulent claims were paid out by T.M., proceeds were divided among participants including Jennifer Fleener, who approved falsified submissions without secondary review.
In 2019, Jennifer Fleener recruited additional employees and associates at T.M., instructing them on how to purchase policies and submit fake claims that she would then approve. The group filed a total of 441 fraudulent claims resulting in losses exceeding $1.19 million for T.M.
“Fraud schemes of any kind erode trust in programs designed to protect people in times of need,” said Tom Wheeler, U.S. Attorney for the Southern District of Indiana. “These defendants abused their positions and exploited legitimate insurance processes for personal gain, resulting in significant losses.” FBI Indianapolis Special Agent in Charge Timothy J. O’Malley said, “Complex fraud schemes often rely on calculated deception and abuse of trust for personal enrichment… The FBI… remains committed to uncovering these schemes… ensuring those responsible are held accountable under the law.”
FBI Indianapolis investigated the case; sentences were imposed by U.S. District Judge Richard L. Young; Assistant U.S Attorneys Bradley P Shepard and Meredith Wood prosecuted it.
The U.S Attorney’s Office for the Southern District is headquartered in Indianapolis with a staffed office also located in Evansville; it oversees operations across sixty southern counties divided into four divisions, prosecutes federal crimes such as this case, defends the United States during court proceedings, collaborates with other law enforcement agencies at all levels within its jurisdiction as part of its role as chief federal law enforcement office under the Department of Justice, according to the official website.