CT operator of prize insurance business charged with fraud offenses
2 mins read

CT operator of prize insurance business charged with fraud offenses

A Norwalk man has been accused of operating a business that sold insurance for prizes Federal authorities said the offers were made by individuals or organizations through which he allegedly defrauded customers of approximately $1 million.

The grand jury returned an indictment Thursday charging Kevin Kolenda, 66, with six counts of wire fraud. US Attorney's Office,

Records show a company called Kolenda owns and operates hole in wonThat provides insurance to individuals or groups that offer prizes at events such as golf tournaments and fishing contests, officials said.

According to authorities, victims of the scheme would sign an insurance contract and pay the insurance premium before hosting a competition, such as a golf tournament that promised a new car to the player who hit a hole-in-one. Does.

Through the contract, Kolenda and the Hole in One will promise to pay an insurance claim for the cost of the insured prize if there is a winner in the Won Event. If no one won an insured prize, Kolenda and the company would keep the premium, officials said.

According to authorities, Hole in Won used a promotional video on its website in which it boasted of being “the world's most successful prize insurance company” and boasted that the company “paid out thousands of prizes” to winners around the world. Is.

The indictment alleges that Kolenda defrauded people and organizations out of approximately $1 million, including approximately $850,000 in insurance premiums paid under false pretenses and more than $100,000 in award costs, which the company was required to pay. Has failed.

The indictment alleges that Kolenda used various fraudulent techniques to avoid paying claims, including making excuses to victims as to why they did not have to pay, sending them to a made-up “claims department” in Washington, DC. Including sending and threatening them. The officials said they would face “fraudulent legal action and reputational damage” if they continued asking for their money.

According to authorities, Kolenda would eventually stop responding to victims and refuse to pay the cost of their insurance awards, often leaving them to pay the cost of the insured awards themselves.

Kolenda was arrested Friday morning and appeared in court in Bridgeport, where he pleaded not guilty. He was released on $50,000 bond.

Kolenda faces up to 20 years in prison on each count, authorities said.

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