Asheville Man Faces Insurance Fraud Charges

By KevinMarcilliat, In White Collar Crimes, 0 Comments

A local Asheville developer who has been under intense scrutiny for his recent failed Seven Falls development now faces white collar crime charges. The man has been charged with three counts of insurance fraud and one count of obtaining property by false pretenses charges.

The man was investigated by the North Carolina Department of Insurance after he allowed a Blue Cross Blue Shield group health insurance policy for his employees at Tradition LLC to cancel for non-payment. In North Carolina, an employer is required to provide a minimum of 45 days written notice upon cancellation of a group health insurance policy, which he did not provide.

Upon criminal investigation by the Department of Insurance, it was discovered that the man continued to charge his employees for the health insurance, totaling $12,131, without actually providing the health insurance coverage. Tradition LLC also ran a self-funded group insurance plan, which was allegedly mismanaged. That insurance policy failed to pay more than $300,000 in medical claims to employees.

The man was arrested on Thursday, April 28. He is currently being held on a $320,000 unsecured bond. This is not the only legal trouble facing the man – he is also in court on civil matters related to the Seven Falls development that is in bankruptcy, and he has been sued by the Bank of Asheville over real estate loans.

White collar crime charges involving accusations of fraud can seriously harm the reputation of a North Carolina businessman or woman. It’s recommended that anyone who is under investigation seek out a Raleigh criminal attorney who can help protect the rights of the accused.

Source: Asheville Citizen-Times “Asheville Area Developer Keith Vinson Arrested,” 4/30/2011, John Boyle

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