When an insurance company’s assets are diverted in an illegal way, those responsible can be criminally charged with asset diversion. Insurers collect premiums from the people they insure and are then supposed to pay claims that are officially covered to whoever holds the policy. With that said, if these assets are then diverted after the fact, an insurance company could suffer serious financial losses as a result. In cases like this, the state often has to intervene in order to protect and represent the policyholder.
With all of these large institutions at play, the need is great for legal professionals who have a deep understanding of the laws that are on the books in relation to asset diversion, their reach, and what charges might result after successful convictions. It’s vitally important that anyone facing criminal investigation or even charges for asset diversion secure legal counsel immediately. With stiff penalties such as fines or even lengthy prison sentences, the stakes could not be higher for those facing these kinds of charges.
What Exactly is Asset Diversion?
Asset diversion is an umbrella term that applies to a few related charges, but it basically relates to the theft of funds from an insurance company. Ordinarily, the funds an insurance company already has will be used to pay out claims, and shareholders will benefit from the resulting profits. However, in cases of asset diversion, scammers will of course take these funds. While this essentially boils down to what we’d know as simple theft, there are some aspects that set it apart. One of these aspects, and one that makes it especially difficult to detect, is that it will be carried out using a variety of separate transactions.
In cases like these, investigators tend to use forensic techniques in order to track down all of the individual transactions, in the process linking them to the individual or individuals who are responsible for the fraud.
How Does the Crime of Asset Diversion Occur?
Asset diversion can happen in a few different ways. One of the ways this can occur is when two separate insurance companies decide to merge, or when a new insurance company is acquired. In a typical case of asset fraud, you’ll have borrowed money that’s then used to gain interest in the insurance company that’s being scammed. After this is done, the debt will be paid off by this new company, and any remaining funds that might be leftover can then be sent over to whoever purchased the policy. There are even times when the insurance company will continue to ensure new people and then just have these new funds diverted numerous times over, continuing the fraud.
What Are the Penalties For the Crime of Asset Diversion?
As with a variety of crimes, the charge of asset diversion can result in state or even federal charges depending on the severity of the crime as well as a few other factors. One law applies to the theft of assets from healthcare benefit programs.
If someone is somehow physically hurt while this crime is carried out, then those responsible could be facing a maximum length of twenty years in federal prison. Even if a charge of asset diversion doesn’t involve someone being physically harmed, it’s still a serious charge to face: The maximum sentence for this charge is twenty years.
Under the umbrella term of asset diversion, you have a variety of other fraud charges that could be brought up against you as well. These could be charges like mail fraud, money laundering, larceny, bank fraud, and others. Each of those charges has its own sentencing guidelines, and when those charges compound on top of each other, you could be looking at years or even decades of prison time.
What Should I Do?
If you’re facing an investigation or charges of asset diversion, the first thing that you should do is secure competent legal counsel. Don’t impede any sort of investigation, but also know your rights. You should speak with your lawyer before ever speaking with the police or other authorities.
One common tactic is for authorities to get a suspect talking early on, to intimidate them with fear of prison should they not tell them everything they know. In the process, people can easily incriminate themselves or enter plea deals, all so that prosecutors can have an easy conviction.
Instead, the best thing that you can do is to find a legal firm that has experience handling cases just like yours, attorneys with a proven track record of success, specifically at the federal level. It’s common for defense lawyers to have experience and skill at the state level, but the federal court system is completely different and should be treated as such.
Who Can I Turn To?
Along with being experienced and skilled at the federal level, you’ll need to find a firm that has experience dealing with the various government agencies that pursue and prosecute cases of asset diversion. With a combined 70+ years of experience at handling cases just like this among so many others, the Norman Spencer Law Group is just such a legal firm.
Our dedicated attorneys have represented cases large and small, simple and complex, from every corner of the country. If you’re not able to get to us, we can get a representative out to you and get started on the most effective legal strategy possible for your case. Our 1:1 service extends to our accessibility options. We provide legal consultations remotely over platforms like Zoom, Skype, and Google Duo, ensuring that you can always get in touch with one of us at a moment’s notice. So if you’re facing any sort of legal trouble, get in touch with us today. Someone from our team will be in touch with you as soon as possible.