United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-08-02 monographic deposited born digital 33 p. GA 1.13:GAO-01-990R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-990R P0b002ee180384d28 f:d01990r DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-01-990R machine generated eng fdlp REPORT GAOREPORTS-GAO-01-990R GAO-01-990R Embezzlement Fraud Insurance regulation Interagency relations Securities fraud Correspondence A01512 This report provides information on insurance regulatory oversight and information sharing in the matter of a highly publicized insurance investment scam exposed in May 1999. Martin Frankel, with the assistance of others, allegedly obtained secret control of entities in both the insurance and securities industries. Instead of managing the assets of these companies in a prudent manner, he allegedly diverted them to other accounts he controlled and used them to support the ongoing scam and his lifestyle. The scam was finally exposed after insurance regulators in Mississippi took enforcement action against three of the Frankel-connected insurers by placing them under regulatory supervision. Weaknesses in key insurance regulatory oversight activities, extending over several years, contributed to delays in detecting the investment scam. GAO found inadequate tools and measures for assessing the appropriateness of insurance company purchasers, analyzing securities investments, evaluating the appropriateness of asset custodians, verifying insurers' assets, and sharing information within and outside of the insurance industry. In addition, GAO found weaknesses in the support services provided by the National Association of Insurance Commissioners, a voluntary association of state insurance regulators. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-990R/html/GAOREPORTS-GAO-01-990R.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-990R/pdf/GAOREPORTS-GAO-01-990R.pdf GAO-01-990R https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-990R Correspondence GAO-01-990R; Briefing Slides on Martin Frankel's Alleged $200 Million Insurance Scam; Embezzlement Fraud Insurance regulation Interagency relations Securities fraud