A Thousand Oaks, Calif., insurance broker was charged with swindling hundreds of thousands of dollars from his clients, including Tom Hanks. Jerry B. Goldman faces 10 counts of mail fraud from a federal grand jury.
Goldman overcharged four clients, including Tom Hanks and musician Andy Summers, formerly of The Police, on insurance policies for 13 years, reports Los Angeles Times. Goldman allegedly overcharged Hanks and his other clients by more than $800,000.
Goldman was arrested at his Thousand Oaks home on Wednesday, reports Reuters.
According to the indictment, Goldman would overcharge the clients on insurance policies, pay the premium to the insurance company and pocket the difference. He allegedly doctored policy forms and records in order to hide the true cost of the insurance polices and to divert suspicion, notes Reuters. Hanks and Summers were identified by prosecutors working on the case, but two other clients, with the initials M.W.H. And S.R., were not identified.
In the indictment, it was reported that Goldman, through the Newbury Park insurance agency he owned, would overcharge clients by up to 600 percent, reports Los Angeles Times. Goldman is expected to be arraigned at a United States District Court in Los Angeles.
Because Goldman conducted his fraud through the mail, including receiving checks for the bogus insurance policies, it became a federal crime. Goldman is facing 10 counts of mail fraud which could spell decades in prison. Each count of mail fraud carries a maximum penalty of 20 years in jail, reports the Los Angeles Times.
The indictment does not list the losses of Hanks, Summers or the two other clients, but the insurance policies covered everything from flood, fire, art, cars, property, earthquakes and worker's compensation, reports Reuters.