Pennsylvania Man Jailed for $1.4M Fraud Using Shell Companies
A Pennsylvania man has been sentenced to 20 months in prison after admitting to defrauding his former employer of over $1.4 million. James Keating, from Paoli, pleaded guilty to wire fraud in late July 2024. The scheme involved fake billing and kickbacks through companies he controlled.
Keating’s fraud targeted Allied World Insurance Co., where he worked before his arrest. He used a shell company, American Construction & Industrial LLC, to submit false invoices for unnecessary claims work. This company alone generated nearly $1 million in illegal profits for him.
The sentence includes 20 months behind bars for Keating’s role in the fraud. He must also return the full amount stolen from his former employer. The case highlights the use of multiple shell companies to conceal illegal gains over an extended period.
