A Vermont insurance broker is going to prison for three years after being convicted of stealing $10.4 million from Aetna. The broker collected premiums but never paid them to the insurer.
The broker, Bonney J. Hebert, 60, of Killington, Vermont, owned a Boston-based risk management and insurance brokerage. In July 2007, Hebert began serving as the broker for a student health insurance contract entered into between Aetna and Rutgers, the state university of New Jersey. The contract between Aetna and Rutgers provided that premiums would be paid by Rutgers to Hebert’s agency and then transmitted to Aetna.
According to court records, between 2009 and 2012, Hebert failed to pass along to Aetna $10.4 million in premiums paid by Rutgers. She used the stolen funds on personal expenses and to cover her business expenses.
Hebert was convicted of one count of wire fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity. After 36 months in prison, she faces three years of supervised home release.
Hebert disclosed her fraudulent scheme to Aetna representatives in June 2012. She subsequently sold her brokerage to another business and directed that payments related to the sale be made directly to Aetna. Through these payments, Hebert has repaid Aetna approximately $1.59 million. She also has not collected more than $900,000 in commissions owed to her by Aetna. Hebert currently owes Aetna $7.8 million in restitution.
