The former owner of a Kennesaw insurance agency has admitted to running a fraud scheme that brought in $4.5 million, which he must now pay back.
James Russell Wiley, 53, has been sentenced to two years in custody and the eight years on probation for his charges of theft and insurance premium fraud, the Cobb County district attorney’s office said in a news release.
As part of his negotiated guilty plea, said DA spokeswoman Kim Isaza, the Acworth man won’t turn himself in until the new year — on Jan. 7. He has been free on bond since his December 2017 arrest.
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Wiles admitted in court Tuesday morning that he had used his company to collect commercial trucking insurance premiums but kept millions in excess commissions, prosecutors said.
This all started in 2016 with a civil complaint in Southern District of New York federal court between Wiley’s company American Underwriting Services and ProSight Specialty Management Co. Prosecutors said American Underwriting contracted with ProSight to get the premiums used in these alleged schemes.
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A civil judgment was imposed, but, prosecutors said, Wiley continued underwriting commercial trucking policies under contract with another company, American Southern Insurance Company, “but again converted that money to his business operations and personal use.”
The crimes that are putting him behind bars now started in 2014 and lasted until 2016, prosecutors said. He must pay the $4.5 million out to ProSight and American Southern Insurance.
Wiley surrendered his insurance license over the summer.
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