Former investment exec gets prison for fraud scheme
Ponca City Now - July 16, 2015 11:34 am
NEW YORK (AP) – A former investment executive has been sentenced to 21 months in prison and $10 million in restitution for a scheme that caused the collapse of an Oklahoma insurance company.
Allen Reichman of Irvington, New York, was sentenced Wednesday in Manhattan. He’d pleaded guilty to conspiracy to commit wire fraud.
Reichman worked for an unidentified investment bank and financial services company.
U.S. Attorney Preet Bharara says Reichman and others schemed to defraud the New York firm into providing a $30 million loan to finance the purchase of Oklahoma-based Providence Property and Casualty Insurance Company.
After that, they lied to get Oklahoma insurance regulators to approve the purchase.
Reichman got at least $200,000 in commissions.
The insurance company collapsed in 2009 because of the loan.
Three other men previously pleaded guilty.