Insurance Insolvency Fraud

A.B. Carter, Inc.
American Association of Parents & Childr
Atlantic General & Specialty Insurance
Atlantic General Ins. Co., Ltd.
Bel-Aire Insurance Company of Missouri
Dallas Bessant
Arthur Blumeyer, III (Sentence: 262 Months)
Bryen International, Inc.
Stephen Coker
Dewey G. Crump
Evergreen Management Services, Ltd.
W.G. King
Lexco, Inc.
Marigot Casualty Company, Ltd.
Olympian Ins. Co. Ltd. of Antigua
John W. Peckham, Jr.
Risk Retention Services Corp.

Action Date: March 15, 1996
Location: St. Louis, MO

Arthur Blumeyer, III and John W. Peckham, Jr. were insurance executives involved in a reinsurance fraud scheme. Their companies included:American Association of Parents & Children; Bel-Aire Insurance Co. of Missouri; Bryen International, Inc., St. Petersburg, FL; Evergreen Management Services Ltd.; Olympian Insurance Co. Ltd. of Antigua, Risk Retention Services Corporation, A.B. Carter, Inc., Atlantic General Insurance Company Limited, Lexco, Inc., Marigot Casualty Company, Ltd and Atlantic General and Specialty Insurance Company, Ltd. Codefendant Dewey G. Crump was a state representative in the Missouri General Assembly between 1987 and 1990 and chairman of the Missouri House Insurance Company. Through his many companies, Blumeyer sold over $40 million in insurance, but diverted much of the premium to his own use. He submitted false financial statements regarding his companies assets. He also hid his ownership in companies. When the California Department of Insurance issued a cease and desist order to stop Bel-Aire Insurance from selling its policies in California, Blumeyer paid representative Crump to introduce legislation that would impede the investigation of his companies. Blumeyer was also associated with insurance felon Stephen Coker and Dallas Bessant. Blumeyer was sentenced to 262 months’ incarceration and was ordered to enroll in a mental health treatment program and an alcohol treatment program. W.G. King was also charged in the indictment of Blumeyer.