Glenn R. Fischer, age 69, of Ellicott City, Maryland, was indicted on charges of wire fraud and aggravated identity theft arising from a scheme to defraud businesses seeking insurance. The indictment alleges that as a result of the scheme, Fischer fraudulently collected more than $3 million in insurance premiums. The indictment was returned on September 22, 2016 and unsealed today.
According to the five-count indictment, Fischer was a partner at TriArc Financial Services, Inc., (TriArc Services) which provided automotive and mortgage insurance products, including residual value insurance. Residual Value Insurance (“RVI”) helped companies leasing vehicles to consumers to manage the risk from decreases in the value of the vehicle during the term of an auto lease. RVI typically provided for payments to the owner of a leased vehicle if the value of the vehicle at the end of the lease was less than a certain amount specified in the terms of the insurance coverage when the lease began. In the early 2000s, RVI policies were widely issued by insurance companies and TriArc Services generated substantial revenue for the company and its partners, including Fischer, who served as insurance brokers for RVI products. In 2008 and 2009, in conjunction with the financial recession and changes in consumers’ desires for used automobiles, many insureds suffered substantial losses in conjunction with previously issued RVI insurance policies.
The indictment alleges that from 2009 until 2014, Fischer persuaded victim businesses to purchase RVI insurance coverage, which Fischer knew did not exist, so that Fischer could use a substantial portion of the victims’ insurance premiums for his personal benefit. Specifically, in the summer of 2009, Fischer created a Nevada corporation called TriArc Marketing Solutions (TriArc Solutions) and opened bank accounts for TriArc Solutions. According to the indictment, during the course of the scheme Fischer caused prospective insureds to believe that he was acting on behalf of TriArc Services. Fischer concealed the creation and use of TriArc Solutions from his partners at TriArc Services.
Fischer allegedly created and sent false insurance coverage documents, fraudulent emails, premium invoices, lists of covered vehicles, and other documents to victim companies, causing them to falsely believe that they had purchased RVI insurance through Fischer. Fischer used the identity of an employee of a multinational property and casualty insurance company in furtherance of the fraud, including his name, title and purported signature on the declaration pages of the fake insurance policies. Fischer concealed from the employee and the company that Fischer was pretending to issue RVI insurance policies on behalf of the company.
The indictment alleges that Fischer collected millions in RVI insurance premiums from the victims, which he deposited into the TriArc Solutions bank accounts. According to the indictment, Fischer and his relatives used the proceeds of the insurance premium payments for their personal benefit.
The indictment seeks the forfeiture of all property which constitutes or is derived from the proceeds of the fraud, including: a money judgment of $3 million, six bank accounts, coins, precious metals, a Nitro Z-8 boating vessel, and two vehicles.
If convicted, Fischer faces a maximum sentence of 20 years in prison for each of the four counts of wire fraud, and a mandatory minimum of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.