Thursday, February 1, 2018

Another Workers Comp Insurer Ponzi Scheme Collapses

So the final shoe has dropped for the Ponzi scheme that was Guarantee Insurance Company/Patriot Insurance. Insurance regulators finally figured out last year that this operation was, by all reports at least, a scam of the first order.

Anecdotal reports indicate unqualified personnel being hired for important positions and an utter lack of underwriting, along with absurd pricing discounting to shovel in as much premium as possible before the inevitable collapse.

But CEO Steve Mariano got over $15 million transferred directly from Guarantee to himself before the collapse. And now injured workers who were "insured" under policies issued by this outfit are waiting for their medical bills to be paid and their disability checks to arrive.

I remember a day when regulation of Workers Comp insurers was designed to prevent this kind of bullshit. It wasn't always completely successful, of course, but it made things a lot more difficult for the crooks and schemers.


1 comment:

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