SCARSDALE, N.Y. -- A Scarsdale insurance agency owner and a Peekskill insurance agent were sentenced to prison for their involvement in a life insurance fraud scheme, according to the Westchester County Business Journal.
Michael Binday, 50, the owner of R. Binday Plans and Concepts Ltd. in Scarsdale received 12 years in prison and forced to forfeit $13.52 million in money gained from the elaborate scheme. James K. Kergil, 59, the Peekskill agent got a nine-year sentence and has to surrender $15.62 million, the Journal reported.
The two men were involved with another agent based in Orlando, Fla. They recruited elderly clients as the straw buyers to apply for life insurance policies, promising them payment if the policies were issued and then resold.