The U.S. Attorney’s Office has updated the charges levied against Georgia Insurance Commissioner Jim Beck, who was indicted in May for charges involving wire fraud, mail fraud, and money laundering that allegedly took place over several years until November 2018.
As of today, the information and charges in the case have been updated by the U.S. Attorney’s Office.
“Beginning in or about February 2013 through in or about June 2018,” Jim Beck allegedly “…did knowingly devise and intend to devise a scheme and artifice to defraud the Georgia Underwriting Association, and to obtain money and property from that entity by means of materially false and fraudulent pretense, representation, and promise,” the court documents begin.
Beck, who assumed elected office on January 14, 2019, was asked to resign by Governor Brian Kemp following news of the federal indictment. The suspended commissioner allegedly defrauded the state of $2 million.
Through the alleged actions of Beck, the Department of Justice believes he “abused the trust of friends and his employer (GUA), in an elaborate scheme to enrich himself at GUA’s expense,” said Chris Hacker, Special Agent in Charge of the FBI.
Beck also reportedly “talked four associates into forming four separate businesses which supposedly supplied necessary services including residential property inspections and water damage mitigation to GUA,” said U.S. Attorney Byung J. Pak.
The four companies are referred to as Company A, Company B, Company C, and Company D in court filings. The companies were used by Beck to allegedly send “regularly approved substantial GUA payments to the four new companies” before sending fraudulent invoices from “Creative Consultants and the GA Christian Coalition” to the companies.
The new details that have emerged in the case bring the alleged fraud to light. Several friends and associates of Beck are referred to in the court documents, referenced by initials.
Creative Consultants and the GA Christian Coalition are both companies that Beck “maintained controlling financial interests” in.
The alleged “Scheme and Artifice to Defraud the Company A, Company B, and Company C Scheme,” began when “Beck told M.B. that he had developed a new, more economical way to do home inspections, which would save insurance companies a lot of money.”
The end result of the scheme led to Beck allegedly defrauding the GUA for a total of $2 million, which he is accused of using to enrich himself as well as “buy and improve personal rental property and for personal state and federal income taxes,” according to previous reports.
At this time, Beck faces 43 counts of wire fraud, mail fraud, and money laundering.
“Upon conviction of one or more of the offenses alleged” in the first 25 counts, “the defendant, Jim C. Beck, shall forfeit to the Untied States of America…any property, real or personal, which constitutes or is derived from proceeds traceable to such violations. The property to be forfeited includes, but is not limited to” the following:
- $80,000.00 seized from United Community Bank · account no. XXXXXX:5675 in the name of Jim Beck for Georgia Inc.
- $5,009.77 seized from United Community Bank account no. XXXXXX9227 in the name of Jim C. Beck dba GA Christian Coalition
- $6,772.82 seized from SunTrust Bank account no. :XXXXXXXXX:3824 in the name of Lucile R. Beck dba Creative Consultants
- $78,049.25 seized from Ameriprise Financial account no. XXXXXXXXXXXX:3133 in the name of Lucile R. Beck and Jim C. Beck; and, v. $256,901.64 seized from Ameriprise Certificate Company account no. XXXXXXXXX:XXX9001 in the name of Lucile R. Beck and Jim C. Beck Sr.
- A sum of money in United States currency, representing the amount of proceeds obtained as a result of the offenses alleged in Counts 1 through 25 of this Indictment.
“Upon conviction of one or more of the offenses alleged in Counts 26 through 39” of the indictment, Beck will also be required to forfeit the above listed items, as well as the following:
- The real property commonly known as 404 Old Peachtree . Road, Lawrenceville, GA 30043, including all appurtenances, improvements and attachments thereon, and any property traceable thereto;
- The real property commonly known as 556 Frashier Rd, Carrollton, Carroll County, GA, including all appurtenances, 17 improvements and attachments thereon, and any property traceable thereto;
- The real property commonly known as 2653 Highway 166, Carroll County, GA, including all appurtenances, improvements and attachments thereon, and any property traceable thereto.
“If any of the property subject to forfeiture, as a result of any act or omission of the defendant…cannot be located, has been transferred or sold to a third party, placed beyond the jurisdiction of the court, has been substantially diminished in value, or has been commingled with other property which cannot be divided without difficulty; the United States of America shall be entitled to forfeiture of any other property of the defendant up to the value of the forfeitable property…”