Insurance scam bilked nearly $5 million from service members, authorities say

SAN DIEGO — California authorities say three men have been arrested on charges of bilking military service members out of nearly $5 million.

Attorney General Xavier Becerra and San Diego District Attorney Summer Stephan said Thursday that Paul Flanagan, Ranjit Kalsi, and Gregory Lee Martin ran a tax fraud and identity theft scheme.

RELATED

Government to seek $830,000 from Navy vet for benefits fraud

A 46-year-old Columbia Falls man has admitted overstating his disabilities to receive government payments for nine years

A 69-count indictment says they operated Go Navy Tax Services from a trailer outside Naval Base San Diego, using personal information to open bogus accounts.

Officials say they tricked service members into buying nearly 5,000 unwanted life insurance policies and annuity contracts. They earned more than $2 million in commissions on sales costing service members about $4.8 million.

RELATED

Former sailor sentenced for Navy Exchange scam

Ex-culinary specialist seaman Fedrick Emery will serve nearly four years in prison.

By Geoff Ziezulewicz

Attorney Earll Pott, who represents Flanagan, calls the charges "a rather gross overreach."

He says service members were sold valuable financial instruments.

In Other News

House advances $832 billion military budget plan for next fiscal year

Only a few Democrats broke ranks to support the House's spending plan for Defense Department operations in fiscal 2026.

VA’s #2 leader downplays political strife between Congress, department

Veterans Affairs Deputy Secretary Paul Lawrence said his relationship with congressional Democrats is strong, despite public fighting.

Senators criticize CFPB for dropping action on troops’ overdraft fees

CFPB ordered Navy Federal in November 2024 to pay $80 million to service members unfairly charged overdraft fees. CFPB terminated that mandate this month.

New mortgage support program for struggling veterans set to become law

Congress passed a bill creating a new partial claim program for veterans who have fallen behind on mortgage payments.

House panel advances DOD policy bill with sweeping acquisition reforms

Both the House and Senate Armed Services Committees have now approved their initial drafts of the annual defense authorization bill.

Load More