Former Insurance Company Chief Indicted - NBC Connecticut
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Former Insurance Company Chief Indicted



    Former Insurance Company Chief Indicted

    Jeffrey Cohen, founder and former president of Indemnity Insurance Company RRG, is indicted in Maryland on five counts of making false statements to insurance regulators. (Published Thursday, July 3, 2014)

    The founder and former president of one of the largest entertainment insurers in the country is facing charges for allegedly making false statements to an insurance regulator.

    Jeffrey Cohen, 39, of Reistertown, Maryland, was indicted last week by a grand jury in Baltimore County, Maryland on five counts of making false statements during an investigation into his company, Indemnity Insurance Corporation RRG.

    Cohen acted as the President and CEO of the Maryland-based risk and retention group until late last year. According to the indictment, as recently as 2012, IICRRG provided general liability, liquor liability and excess liability coverage to more than 3,000 nightclubs, restaurants and concert tours around the country.

    He faces a maximum of 15 years in prison and a $250,000 fine.

    Indemnity Insurance Corporation was forced into liquidation following an investigation by the Delaware Insurance Commission.

    The indictment alleges that in June 2012, regulators from the Delaware Insurance Commissioner questioned the financial status of the company.

    According to the U.S. Attorney’s Office in Maryland, Cohen allegedly caused IICRRG to file an unaudited financial statement in November 2012 and January 2013, and sent a letter to, the Commissioner, respectively, which falsely claimed that IICRRG had $5.1 million in cash on deposit, in order to influence the actions of the commissioner.

    In April 2013, Cohen caused a fax to be submitted to the Commissioner that falsely claimed that a bank had verified that IICRRG had $5.1 million in cash on deposit at the bank.

    The liquidation of the company is impacting hundreds of establishments in and around Connecticut.

    As of April, at least 68 bars in Connecticut with pending liability cases against them, found out they no longer are insured. Meaning they are now forced to find representation and pay any losing claims out of their own pockets.

    Records show more than 120 bars and restaurants with pending liability cases in New York are also left without insurance.

    A NBC Connecticut Troubleshooters investigation in June found that bar owners are scrambling to find insurance in the aftermath. With many saying that if they do lose these pending cases, their only option would be to close down.

    In a phone conversation prior to the release of the Troubleshooters investigation, Cohen defiantly denied the allegations against him. He challenged the federal government to prove he participated in any of the allegations made against him.

    He blames the liquidation on a political vendetta against him by the Delaware Insurance commissioner. Cohen estimated more than 1,000 businesses will be forced to close because of the liquidation of his company.

    Cohen and his attorneys have yet to respond to our calls for comment.