Claims Exec Who Defrauded Allied World Insurance Ordered to Prison, Pay $1.2M

January 30, 2025

Keating was an assistant vice president and surety bond claims handler at Allied World Insurance Co. He later served in the same capacity at Crum and Forster subsidiary U.S. Fire Insurance Co., where he also handled claims on Allied World surety bonds. All surety bond claims were handled through Allied World’s offices in Farmington, Connecticut.

According to court documents and statements, between 2017 and 2021, Keating defrauded Allied World in two ways. First, he used a shell company, American Construction & Industrial LLC, to bill Allied World for unnecessary claims work that was not performed and took the proceeds for himself. Second, he solicited and received kickbacks from Allied World vendors through another Keating-owned company, Surety Risk Solutions (also known as “SRS” or “SR5”), without the knowledge of his employer.

Prosecutors said Keating also caused these vendors to use another company in which he had an undisclosed ownership interest, Kodiak Asset Recovery, for asset searches at inflated prices. Keating profited nearly $1 million through American Construction & Industrial LLC, more than $350,000 in kickbacks through Surety Risk Solutions, and nearly $125,000 through Kodiak Asset Recovery.

U.S. District Judge Victor A. Bolden in New Haven also ordered Keating to pay restitution of $1,226,603.97, which represents the loss to Allied World of $1,446,491.95, less $219,887.98 that he previously repaid as part of a civil judgment.

On July 30, 2024, Keating pleaded guilty to wire fraud.

The sentencing was announced by Marc H. Silverman, acting U.S. Attorney for the District of Connecticut.

Was this article valuable?

Here are more articles you may enjoy.