Former Rutgers broker admits defrauding Aetna
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A former insurance broker for Rutgers University admitted to stealing more than $10 million in premiums owed to Hartford, Connecticut-based Aetna Life Insurance Co.
Killington, Vermont-based Bonney J. Hebert waived her right to an indictment and pleaded guilty before Senior U.S. District Judge Alfred V. Covello in Hartford to wire fraud and money laundering charges related to her theft from Aetna between 2009 and 2012, according to a statement released Tuesday by the U.S. attorney's office for the District of Connecticut.
Ms. Hebert's Boston-based brokerage, Academic Risk Resources and Insurance L.L.C., previously brokered contracts between health insurance providers and colleges and universities to provide health insurance for students.
In July 2007, the firm served as broker for a student health insurance contract between Aetna and New Brunswick, New Jersey-based Rutgers.
The contract provided that Rutgers would pay premiums to Academic Risk, which would then transmit them to Aetna.
But between 2009 and 2012, Ms. Hebert failed to transmit $10,358,728 in premiums paid by Rutgers, and instead used the stolen funds for personal expenses and to cover the business expenses of her brokerage.
Ms. Hebert pleaded guilty to one count of wire fraud, which carries a maximum prison term of 20 years, and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum term of 10 years.
After disclosing her scheme to Aetna in 2012, Ms. Hebert sold Academic Risk to another business and directed that payments from the sale be made directly to Aetna.
Ms. Hebert currently owes Aetna $7,846,305.45 in restitution. Her sentencing is slated for Aug. 27.
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