Former CEO of Frisco-based insurance company sentenced to federal prison (ripped off Va. Tech)
The former CEO and owner of a Frisco-based company that provided insurance to Virginia Tech students was sentenced Wednesday to 18 months in federal prison.
John Paul Gutschlag Sr., 74, of Aubrey had owned and operated GM-Southwest Inc., which was based out of an office on Lebanon Road in Frisco.
He and the company pleaded guilty last year to racketeering, wire fraud and mail fraud. According to court documents, GM-Southwest was a third-party administrator that provides student health insurance. Prosecutors say it overstated claims by more than $1 million to boost profits.
As part of the sentence, Gutschlag and the company were also fined $1.2 million by the government and ordered to pay another $1.2 million in restitution to Virginia Tech.
Gutschlag also faces a civil suit by the Commonwealth of Virginia seeking more than $10 million in damages in connection with this case, according to court documents.
http://crimeblog.dallasnews.com/2014/05/former-ceo-of-frisco-based-insurance-company-sentenced-to-federal-prison.html/
Cross-posted in the Virginia Group.