Insurance broker admits stealing $10mn from carrier

A former insurance broker pleaded guilty to wire fraud and money laundering in a contract between a university and its insurer.

Risk Management News


A former Massachusetts insurance broker pleaded guilty Tuesday to charges that she stole more than $10 million from Aetna Life Insurance Co. by withholding premium payments from Rutgers University.

Bonney J. Hebert of Killington, Vermont copped to one count of wire fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity while providing insurance broker services between Aetna and New Jersey-based Rutgers as president and sole owner of Academic Risk Resources and Insurance in Boston.

Under the terms of the contract, Hebert was meant to coordinate health insurance for Rutgers students through Aetna by collecting premiums from Rutgers and transmitting them to the insurer.

Instead, Hebert collected the funds and used them on personal expenses, including the running of her brokerage. Between 2009 and 2012, Hebert stole $10,358,728.

In June 2012, Hebert disclosed her scheme to Aetna representatives, sold her business and used the proceeds to pay Aetna $1.59 million. In addition, she has foregone more than $900,000 in commissions owed to her by Aetna, and currently owes $7,846,305.45 in restitution.

She used the reallocated funds to cover personal needs and business expenses for her brokerage.

The FBI and the Internal Revenue Service’s Criminal Investigation Division both investigated the matter.

After pleading guilty this week, Hebert faces up to 30 years in prison.

Sentencing has been scheduled for August 27.


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