Air Insurance Agent Sentenced for Felony Fraud
MD (May 1, 2009) - Attorney General
Douglas F. Gansler announced today that Cullen D. Hofmann,
42, of Shoreham Ct. in Bel Air, was sentenced on a single count
of felony insurance fraud. Baltimore County Circuit Court Judge
John Turnbull sentenced Hofmann, a former insurance agent,
to six months incarceration, five years probation upon release,
and ordered him to pay $356,820 in restitution. If Hofmann
violates his probation, he could receive up to seven and a
half years in jail and an additional fine of $50,000.
The investigation found
that from January 2005 through May 2007, Hofmann submitted false
information to Carefirst, thereby reducing
the costs of the health insurance premiums of his business clients.
Hofmann then collected the correct amounts from these clients,
remitted the reduced premiums to Carefirst, and pocketed the difference.
Carefirst discovered the fraud when its investigators observed
several insured businesses using the same mailing address as each
other and determined that it was Hofmann’s address.
Hofmann pled guilty
on January 28, 2009. The sentence and conviction follow a joint
investigation by the Insurance Fraud Division of
the Maryland Insurance Administration and the Office of the Attorney
General. In making today’s announcement, Attorney General
Gansler thanked Assistant Attorney General Benjamin Harris for
his work on the case.