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An insurance agent commits fraud while running for Congress in Arizona

Case analysis: Although Congressmen write the law, they are not above it.

By Barry Zalma, Esq., CFE | Updated on December 19, 2014

Although Congressmen write law, they are not above it. Former Arizona Congressman Richard Renzi learned this lesson the hard way when he was convicted by a jury on charges of conspiracy, honest-services fraud, extortion, money laundering, making false statements to insurance regulators, and racketeering. In U.S. v. Renzi, the Ninth Circuit Court of Appeal was asked to reverse convictions for blatant insurance fraud by using clients funds held in trust to fund Renzi’s successful campaign for Congress.

The evidence showed that Renzi, who owned and operated an insurance agency, misappropriated clients’ insurance premiums to fund his congressional campaign, and lied to insurance regulators and clients to cover his tracks. Finally, the evidence established that Renzi used his insurance business as an enterprise to conduct a pattern of racketeering activity by diverting clients’ insurance premiums for his personal use, facilitating an extortionate land transfer, and laundering its proceeds.

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