TRENTON – A former New Jersey resident admitted his role in a $15 million insurance scam.
Edward Dombrowski, 45, who now resides in Acworth, Ga., pleaded guilty to a count of conspiracy to commit wire fraud before United States District Judge Freda L. Wolfson in a Trenton courtroom on Monday.
Dombrowski and an accomplice developed and marketed a group life insurance policy to the City of Linden and several unions in New Jersey, according to United States Attorney Paul J. Fishman.
The policies did not actually exist, but Dombrowski convinced a financing company to pay $15 million to an account he controlled to fund a group life insurance policy for the city of Linden. Instead of paying the money to an insurance company, Dombrowski diverted nearly $2 million for his own use to purchase real estate, stock, and two luxury automobiles.
The truth was discovered when employees died, and no death benefits were paid, according to Fishman.
Dombrowski faces up to 20 years in prison and a $250,000 fine when he is sentenced on May 26.
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