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Insurance executive accused of selling phony health plans
SAN FRANCISCO — An insurance executive was indicted Monday by a federal grand jury on accusations he sold fraudulent health plans and enriched himself with customers’ premiums.
John B. Hyde, president of Interstate Services Inc., was charged in a 64-count indictment unsealed here. Hyde was arrested at his Stinson Beach home, which prosecutors now want him to forfeit. Hyde was released on $1 million bail.
According to the indictment, Hyde, who was president of Interstate Services Inc. of Novato, did not put customer premiums into trust accounts or buy insurance from an established insurance company for his customers.
As a result of the scheme, prosecutors said, thousands of customers were left without coverage.
The government said that Hyde used the premiums to lease expensive cars, buy sporting tickets and to pay off his expenses.
A message left with Hyde’s lawyer was not immediately returned.
