Richard B. Russell Federal Building and U.S. Courthouse, Atlanta.
A federal grand jury in Atlanta has indicted Georgia Insurance Commissioner Jim Beck on multiple fraud and money-laundering charges in an alleged scheme that has entangled the Georgia Christian Coalition, which Beck also heads.
The 38-count indictment, announced Thursday by U.S. Attorney Byung J. "BJay" Pak in Atlanta, accuses Beck of embezzling more than $2 million from the Georgia Underwriting Association.
Beck was the association's general manager of operations, and also served as deputy insurance commissioner and chief of staff to former Insurance Commissioner Ralph Hudgens. Beck is accused of establishing multiple shell companies that "existed only to produce fraudulent invoices, collect payment for fraudulent invoices, and redirect payments … to Beck," the indictment says.
Beck was elected insurance commissioner in November and took office in January. The indictment alleges that for at least five years before he was elected, Beck siphoned funds from the Georgia Underwriting Association — a private organization established by state law to provide high-risk property insurance to homeowners across the state.
The GUA is governed by a board appointed by the insurance commissioner. It collects premiums from its customers and issues assessments to association members that include every insurer authorized to write property insurance policies in Georgia.
The multifaceted scheme outlined in the indictment relied on companies Beck created and in which he held a controlling interest that billed the GUA for online home inspections, data scans and mitigation services for water damage that allegedly never took place. Beck allegedly offered several individuals — identified only by their initials in the indictment — as much as 10% of every payment processed for assisting in the schemes.
