N.D. Man Found Guilty of Medical Malpractice Insurance Fraud

May 21, 2007

A man who sold bogus medical malpractice insurance to Fargo’s Red River Women’s Clinic and other abortion providers nationwide has been sentenced to serve nearly six years in prison.

William Ledee III, 64, of Atlanta, was sentenced to five years and 10 months in prison in U.S. District Court in that city earlier this month, said Patrick Crosby, a spokesman for federal prosecutors.

Ledee also forfeited $10 million in cash and real estate, including a home at Hilton Head, S.C. He had been indicted in 2004 and 2005 on several charges including wire fraud, mail fraud, interstate transport of money taken by fraud, money laundering and using false financial statements in his business. He pleaded guilty last August.

His numerous businesses based in Bermuda and Atlanta collected premiums from clients who believed they were buying medical malpractice coverage.

In 2004, the North Dakota Insurance Department began investigating one of the companies. In August 2004, Insurance Commissioner Jim Poolman issued an order barring Ledee and his companies from doing business in the state.

Crosby said the North Dakota Insurance Department ‘provided valuable documentation and assistance” in exposing the fraud.

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