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ATLANTA – The Georgian Insurance Commissioner was indicted on Tuesday by the federal government for wire fraud, mail and money laundering, allegedly resulting from crimes that predated his election.
The indictment, which counts 38 counts, charges insurance and security commissioner Jim Beck, 57, with developing a complex billing system. Fraudulent to defraud his employer of over $ 2 million over five years, just before his election in November.
The charges relate to Beck's time as chief operating officer for the Georgia Underwriting Association, or GUA, which was created to provide high-risk property insurance to homeowners in Georgia. He was elected by the Board of Directors of the GUA and held this position from January 2012 to his appointment as the Commissioner of Insurance on January 14 of this year.
According to the indictment, Beck, a Republican, used this money for his personal expenses and to finance personal accounts of investments, retirement and savings, as well as for his election campaign in all the state. The indictment also states that he used the funds to purchase and improve personal rental properties as well as for state income taxes and federal taxes.
Bill Thomas, a lawyer for Beck, said in an e-mailed statement that Beck "strongly denies" the allegations.
"He acted legally and in good faith," Thomas wrote, adding that Beck "looks forward to cleaning up his reputation."
Thomas also noted that the allegations did not relate to Beck's work as Insurance Commissioner and that he was eager to continue this work.
US Attorney General Byung J. "BJay" Pak acknowledged that the alleged crimes pre-dated Beck's appointment as Commissioner of Insurance.
"However, occupying a position of strength does not protect you from the sins of your past criminal activities," Pak said at a press conference. "Justice and the rule of law will eventually catch you."
As CEO of GUA, Beck also had financial interests in two companies, Creative Consultants and Georgia Christian Coalition, says the indictment.
Beck has convinced four partners to form four separate companies for the stated purpose of providing services to GUA, says the indictment. These companies are named in the indictment only as companies A, B, C and D.
Beck then used a fraudulent billing system developed to produce forged documents and, as a managing director, approved the payments of GUA to the four companies, the indictment said. He then sent fake invoices from Creative Consultants and the Georgia Christian Coalition to the four companies and ordered his four associates to pay the bills with the help of funds provided by GUA, investigators said.
The plan was implemented from February 2013 to August 2018, says the indictment.
Pak said the investigation was continuing and would not comment on whether other indictments would follow. At least two of the companies did not provide any services for the money they billed, and while the other two provided certain services, they also served as bridges for billing one of the other companies.
Chris Hacker, special agent in charge of the FBI office in Atlanta, said the investigation began about 10 months ago, prior to Beck's election to the position of Insurance Commissioner, based on the 39, a recommendation of the Inspector General of Georgia.
"The evidence has established the fact that Beck abused the trust of his friends and employer, GUA, as part of a scheme designed to enrich himself at GUA's expense," Hacker said.
According to the Georgian Constitution, the fact that Beck is suspended from office when he is indicted depends on whether the charges are alleged to be related to "the performance or activities" of those functions .
Once the governor has received the indictment, he must wait 14 days, then, if he believes that the charges relate to the performance of his duties as commissioner, Beck must appoint a review board composed of the Attorney General and two other public officials.
The commission would have 14 days to hold a hearing and make a decision. If the commission decided that "the indictment infringes on the administration of the office of the public official impeached and infringes on the rights and interests of the public", the governor suspend him immediately pending the outcome of the proceedings. the expiration or the expiration of his term, whichever comes first.
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