Mississippi to Receive Portion of $72 Million in Recently Seized Martin
From: Office of the State Insurance Commissioner
Filed 12/28/07 GCN
Jackson -Commissioner of Insurance George Dale announced today that
Mississippi will receive a portion of the $72 million in funds and assets
of Martin Frankel seized by the Federal Bureau of Investigation (FBI) and
the Internal Revenue Service (IRS) as a result of Frankel's criminal
enterprise. In 1999, Martin Frankel fled the United States after
defrauding seven insurance companies in five different states of over $200
million dollars. Since that time, the Receivers of these insurance
companies have pursued the assets which were looted by Mr. Frankel and his
A Federal Court in the District of Connecticut has ordered that funds and
assets in forfeiture accounts were the property of the
receivers/liquidators of the insolvent insurance companies and ordered
that the funds be turned over to Commissioner Dale and receivers in four
other states. The forfeiture accounts included funds resulting from
the sale of Frankel's two homes in Connecticut, the auction of 21
automobiles, funds seized from bank accounts in Switzerland, and funds
seized from numerous bank accounts in the United States.
Staff of the Mississippi Insurance Department (MID) identified and
provided information to the FBI and the IRS that allowed federal
authorities to seize the funds held in the Swiss bank account and some
other US and foreign accounts.
"I consider the role the Mississippi Insurance Department has played in
bringing Mr. Frankel and his co-conspirators to justice to be one of the
finest accomplishments during my time in office. Since the discovery of
the crime, the MID has worked tirelessly with federal authorities. It
pleases me to say that all Mississippi policyholders defrauded by Mr.
Frankel have been made whole," said Commissioner Dale.
The receivers have filed numerous lawsuits against entities whose
involvement with Frankel resulted in losses to the insurance companies.
The receivers have recovered millions of dollars from these negligent
defendants and the prosecution of some of these cases will continue into
2008. The receipt of the federal forfeiture funds brings the total
recovery (by the receivers) on the Frankel estates to approximately $126