Fairfielder Michael Millman, 63, pleaded guilty on April 19 to charges of stealing more than a million dollars of insurance money he managed for other companies. Millman owned the Nutmeg Benefit Group LLC and the Nutmeg Welfare Benefit Plan and Trust, located at 1375 Kings Highway East, Fairfield. These companies managed life insurance and disability insurance for his client's employees.
Between June 2005 and December 2009, Millman stole $655,893.55 from his clients, according to Nora R. Dannehy, United States Attorney for the District of Connecticut. His scheme involved withholding insurance payments to be sent to insurance carriers, as well as taking loans from the value of participants insurance policies. He also diverted policy payments directed to him, whether for transfer or surrender.
Millman also defrauded Essex Savings Bank of $344,516.40. The bank was the Nutmeg Welfare Benefit Plan and Trust's trustee, holding the insurance money. To cover his tracks, he created fake statements to show participants' payments had been forwarded in full to insurance companies, and that no loans had been taken on the policies.
Millman pleaded guilty to one count of bank fraud, two counts of wire fraud, and one count of embezzlement and theft from an employee pension or welfare benefit plan. Senior United States District Judge Peter C. Dorsey in New Haven scheduled sentencing for September 3, 2010, at which time Millman faces a maximum 75 years in prison and a fine of up to approximately $2 million.
Millman also headed and owned Affiliated Financial Partners in Fairfield. Its website describes the company's mission as: "to help our affiliatesindependent producers who work with high net worth clients and major corporationsachieve peak performance. By pooling our collective intellectual and business capital, AFP provides a platform to enhance producer efficiency, market effectiveness, and revenue." AFP was not part of Millman's indictment.
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