Former Springfield businessman Bart S. Posey Sr., his wife Angela and two other individuals were indicted in the U.S. District Court for the Middle District of Tennessee on Wednesday for their role in a health insurance scheme that defrauded 17,000 victims out of $28 million.
Bart Posey, Angela Posey, William Worthy, of South Carolina, and Richard Bachman, of Austin, Texas, were involved in Smart Data Solutions in Springfield, a company that marketed itself as an insurance underwriter.
The company wasn’t licensed to operate in any state and Davidson County Chancery Court chancellor Ellen Hobbs Lyle ruled that the company acting as an unlicensed insurance company. Lyle ordered SDS’s assets to be liquidated .
The 57-count indictment filed against the four individuals includes charges of conspiracy, wire and mail fraud, embezzlement from a health care benefit plan, and money laundering.
According to the indictment, the company accepted more than $28 million in health care coverage premiums but denied and rejected legitimate claims. More than $5.4 million of the money was diverted for the defendants’ personal use, the indictment claims.
The individuals could spend up to 20 years in prison on the wire and mail fraud counts; 10 years in prison on the health care embezzlement and money laundering counts; and five years in prison on the conspiracy counts; and be charged a $250,000 fine per count, according to the U.S. Attorney’s Office in Nashville.