An ongoing federal investigation in North Carolina has revealed that a small reinsurance broker and confederates scammed two self-insurance groups and a captive insurer out of $39 million in workers' compensation premiums, according to government officials.
The broker--Thomas Gerard Reitz, of Alpharetta, Ga.--two weeks ago pleaded guilty in U.S. District Court in Charlotte, N.C., to mail fraud and money-laundering charges that carry a maximum term of more than 20 years.
The FBI said the investigation is ongoing, and Mr. Reitz' plea agreement calls for him to testify "against any co-defendants" charged by prosecutors. The probe may go on four months "or more," noted Suellen Pierce, a representative for the Charlotte U.S. Attorney's office.
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