A jury has found James Graf guilty of federal fraud charges in connection with his work for Employers Mutual L.L.C., according to officials with the U.S. attorney’s office in Los Angeles.[@@]
Federal prosecutors say Employers Mutual, Glendale, Calif., was a fake health insurer that left more than $20 million in unpaid claims when it was shut down.
Prosecutors have accused Graf of conspiring with 2 other men to set up Employers Mutual and market fake health coverage.
Graf was convicted of 1 count of conspiracy, 5 counts of mail fraud, 10 counts of misappropriation in connection with a health benefit program, 6 counts of money laundering and 1 count of obstruction of justice, officials say.
Graf is scheduled to be sentenced March 6, and he faces a maximum possible sentence of 200 years in prison, officials say.