A former Livermore, California, insurance executive, Jasbir Thandi, age 69, pled guilty in federal court to conspiracy charges involving insurance fraud. Thandi admitted his role in fraudulent schemes that led to the collapse of two insurance companies: Global Hawk Risk Retention Group and Houston General Insurance Exchange (HGIE).
Thandi founded Global Century Insurance Brokers, which managed Global Hawk's insurance business. Beginning around May 2018, Thandi and co-conspirators created fake financial documents, including bank and brokerage records, that falsely overstated the insurance capital and reserves Global Hawk held. These fraudulent documents were submitted to the Vermont Department of Financial Regulation, the state regulator for Global Hawk. The fraud was discovered in 2020, leading to Global Hawk's insolvency and liquidation.
Thandi also misappropriated more than $1.5 million from Global Hawk for personal expenses such as a house and a luxury vehicle. He used Global Hawk funds, which were legally required to be kept as reserves to cover future insurance claims, to buy and sell stocks.
Additionally, Thandi obtained unauthorized lines of credit totaling more than $20 million on behalf of Global Hawk without board approval. He also admitted to engaging in similar fraudulent activities involving HGIE, a Texas insurance company.
Thandi and co-conspirators fabricated financial statements submitted to the Texas Department of Insurance, falsely representing that HGIE had millions in reserves and capital, masking that HGIE did not meet capital reserve requirements mandated by Texas law.
Thandi is the fourth and final defendant to plead guilty related to these schemes, joining co-defendants Sandeep Sahota, Jaspreet Padda, and Gunjan Aggarwal, who pled guilty earlier. Thandi was to face sentencing in August 2025, where he could receive up to five years in prison and a $250,000 fine per count of conspiracy to commit insurance fraud.
The Department of Justice is notifying victims through a dedicated victim notification system.
The case was investigated by the FBI and U.S. Postal Inspection Service, and prosecuted by federal attorneys in the Northern District of California. The fraudulent schemes caused significant financial damage, resulting in the collapse of the two insurance carriers and losses for numerous policyholders and stakeholders.
Source: https://www.independentnews.com/news/livermore_news/former-livermore-insurance-executive-pleads-guilty-to-pair-of-fraud-charges/article_09b692af-9ab2-4b15-bcbb-a88c09f8d603.html
Commentary
Executive fraud involving the misuse of organizational funds for personal benefit constitutes a serious violation of both fiduciary duties and federal laws designed to maintain the integrity of operations and protect stakeholders.
A breach of fiduciary duty occurs when someone entrusted with the property of another fails to act in the best interest of that person. Duties include loyalty, good faith, full disclosure, and fair dealing. Self-dealing as in the above article can lead to lawsuits containing breach allegations and demands for damages, profit disgorgement, and injunctive relief.
Under federal law, criminal fraud encompasses schemes intended to defraud or obtain money by false pretenses, and it applies rigorously to corporate executives who exploit their positions by diverting organization assets for personal gain. The misuse of organization funds, such as purchasing personal residences, luxury vehicles, or engaging in unauthorized investments with organizational money, can constitute criminal offenses such as wire fraud, mail fraud, and conspiracy to commit fraud.
The intent element is critical in federal fraud statutes, meaning prosecutors must show the executive knowingly engaged in deceptive practices to achieve unlawful financial benefit. Executives who coerce or fabricate false financial documents to conceal their conduct face criminal liability, as seen in cases where falsified bank records or inflated asset reports are submitted to regulatory authorities.
Federal prosecutors have increasingly focused on holding organization leaders accountable through coordinated investigations involving the FBI, U.S. Postal Inspection Service, and regulatory bodies. Successful prosecutions not only penalize the individual but also serve as deterrents to others in leadership roles who might contemplate similar misconduct.
The final takeaway is that executives using organization funds for personal gain violate fiduciary duties, as well as criminal laws – behaviors which can affect both stakeholders and the public trust.
