Broker who sold nonexistent policies to pay $3.5 million

COEUR d’ALENE – An insurance broker who sold nonexistent policies and kept part of the premiums is facing a judgment of $3.5 million and potential prison time.

Jason Ralph Ball, 36, of Coeur d’Alene, pleaded guilty last week in U.S. District Court to one count of insurance fraud, one count of mail fraud, and one count of money laundering.

Ball sold phony policies to 38 different companies, according to the U.S. Justice Department. In a plea agreement, he admitted to collecting premium payments of approximately $3.5 million over a year’s time. Ball paid approximately $2.7 million back to the victim companies in claims and reimbursements, and kept the rest of the money for himself.

Ball was the president of Cobalt Inc. He was originally charged with multiple counts of insurance fraud, mail fraud, wire fraud and money laundering. Prosecutors agreed to dismiss some of the charges in return for Ball’s guilty plea, but his conduct in those cases can be considered by the court in sentencing him, according to a Justice Department news release.

Ball has agreed to pay a judgment of more than $3.5 million, forfeit money in two bank accounts, and his property at 5468 N. Martha Loop in Coeur d’Alene. He faces a maximum sentence of 10 years in prison for insurance fraud, 20 years for mail fraud, and 20 years for money laundering.

His sentencing is set for May 9.