Former insurance agent arrested for defrauding customers, COVID fraud

Summary

A press release of the U.S. Attorney's Office for the Southern District of Ohio, dated June 2, 2022, announcing the arrest of former insurance agent Seneca Birchmore, 44, of Cincinnati, on federal charges. According to court documents, after losing his license in 2019, Birchmore stole the identities of two other insurance agents to write life insurance policies for customers who did not want them, with commissions on those policies totaling more than $80,000. It is also alleged that Birchmore fraudulently obtained two COVID Paycheck Protection Program loans totaling more than $40,000, claiming a business that does not exist and 2019 gross income of more than $13 million. The release states that a criminal complaint merely contains allegations.

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                                     Department of Justice
                                        U.S. Attorney’s Office
                                      Southern District of Ohio

FOR IMMEDIATE RELEASE                                                        Thursday, June 2, 2022

Former insurance agent arrested for defrauding customers,
                     COVID fraud
CINCINNATI – A former insurance agent was arrested this morning on federal charges alleging he
defrauded dozens of victims in the Cincinnati and Dayton area and fraudulently obtained two COVID
Paycheck Protection Program loans.



Seneca Birchmore, 44, of Cincinnati, lost his license as an insurance agent in 2019 because he was
writing insurance policies for people who did not want them so that he could collect the
commissions.



According to court documents, after losing his license, Birchmore then stole the identities of two
other insurance agents and used those identities to write more life insurance policies for customers
who did not want them. It is alleged Birchmore had the commissions from dozens of local customer
victims deposited into his own bank accounts.



Local law enforcement departments received complaints from victims that money was being
automatically withdrawn from their bank accounts for insurance policies they never ordered. Many
of the victims are senior citizens, and most reside in Dayton, Englewood, Middletown and
Cincinnati.



The commissions for Birchmore’s original fraudulent insurance policies under his own name as an
agent totaled more than $8,000. The commissions for policies created under the stolen identities of
other agents totaled more than $80,000.



It is also alleged that, in a separate scheme, Birchmore fraudulently obtained two COVID Paycheck
Protection Program loans totaling more than $40,000. Birchmore allegedly claimed on both loan
applications that he owned a business in his name and stated his gross income for 2019 was more
than $13 million. It is alleged that no such business exists.



Fraud in connection with emergency benefits is a federal crime punishable by up to 30 years in
prison. Social security fraud carries a potential maximum penalty of five years in prison and
aggravated identity theft includes a mandatory two years of imprisonment.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, was joined by the Social
Security Office of Inspector General, U.S. Secret Service, Ohio Department of Insurance, Ohio
Bureau of Motor Vehicles, U.S. Department of Labor Office of Inspector General, U.S. Marshals
Service, Butler County Sheriff’s Office and Cincinnati Police Department in announcing the charges.
Special Assistant United States Attorney Timothy Landry is representing the United States in this
case.



A criminal complaint merely contains allegations, and defendants are presumed innocent unless
proven guilty in a court of law.



                                                ###
Topic(s):                                             Component(s):
Coronavirus                                           USAO - Ohio, Southern
Financial Fraud


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