Jonas Knopf, 65, a licensed insurance producer and CEO of Madison Financial Services in New Jersey, used false information to give BCBS the impression that his clients were actually his employees seeking health benefits, according to the Justice Department.
The scheme, which began in 2009 and ended in 2013, resulted in the fraudulent payout by BCBS, according to the Justice Department.
If convicted, Mr. Knopf could face up to five years in prison and a maximum fine of $250,000.
Mr. Knopf’s sentencing is scheduled for Aug. 19.
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