Scheme against The Hartford lands Rhode Island man in prison
A federal judge sentenced a Rhode Island businessman to 33 months in prison for his part in a kickback scheme that netted him nearly $2 million in furniture from The Hartford Insurance Co. and $3.6 million in business from the insurer.
Michael Young, 36, of Coventry, R.I., pleaded guilty in July to counts of mail fraud and tax evasion as part of a scheme that occurred between 2001 and 2005, according to the Harford Courant.
Young worked for a company that did business with The Hartford and was accused of conspiring with Todd Olynciw, a former procurement officer for the insurance company.
Federal prosecutors said Young used another company, a cleaning business owned by one of his relatives, to coordinate the delivery and installation of furniture for the insurer, even though the company did not have a warehouse, trucks or any employees who delivered or installed furniture, according to the report.
Through Olynciw, Young was awarded more than $3.6 million in contracts by The Hartford in exchange for more than $200,000 in kickbacks or payments for automobiles, housing and personal expenses, as directed by Olynciw.
Concurrent to that scheme, the Courant reported, Young and Olynciw sole nearly $2 million worth of furniture from the insurer.
In addition to his prison sentence, Young must pay $792,933 in restitution to The Hartford, $507,861 to the IRS for failing to pay taxes on the money made from the scheme and must forfeit an additional $264,311 from the scheme to the federal government, according to the report.
In April 2008, Olynciw was sentenced to 28 months in federal prison for his role in the scheme.


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