October 7, 2011 – 12:32 pm ET
On Oct. 2, 2005, the Ethan Allen capsized on Lake George, killing 20 of its passengers. When Shoreline tried to collect on its insurance policy for the accident, prosecutors said Mr. Purser drafted a number of falsified backdated documents in an attempt convince the tour company that it never bought coverage for boating operations or accidents on Lake George.
All five of Mr. Purser’s co-defendants in the fraud scheme are still awaiting trial.
Prosecutors allege that, beginning in 1999, the group conspired to sell dozens of fake commercial insurance policies through a collection of fictional offshore insurers and business advocacy associations. The defendants allegedly sold general liability and life insurance policies to nursing homes, assisted living facilities, apartment complexes, condo associations, bars, restaurants and other businesses throughout the U.S., according to the indictment filed in February.
In addition to wire fraud, prosecutors have levied charges of money laundering and obstruction of justice against all or some of the defendants.