Former State Representative Convicted for Insurance Fraud

COLUMBIA, SC—United States Attorney William N. Nettles stated today that Robert A. Kohn, age 65, of Charleston, was convicted of mail fraud, a violation of 18 U.S.C. § 1341, after a two-and-a-half day trial. Kohn is a former state representative. The jury deliberated a little over an hour Wednesday before reaching its verdict. Judge P. Michael Duffy of Charleston presided over the case and will impose the sentence on a date to be determined.

According to evidence presented during the trial, Kohn worked as an insurance consultant, periodically assisting companies with worker’s compensation matters. Among those companies was Knight’s Services, a Charleston-based company overseen by Roy Knight. Knight’s Services performed pipe fitting and welding jobs at Detyens Shipyards. Between 2002 and 2004, Kohn helped prepare Knight’s Services’ annual insurance submissions to Companion Property & Casualty Insurance Company. The premiums charged to Knight’s Services for this coverage were based on the payroll for the company. Kohn and Roy Knight, who has previously pled guilty to related charges, fabricated Knight’s Services’ payroll figures in order to obtain lower premiums for the company. Over the three-year time span, Kohn saved Knight approximately $370,000 in premiums. The fraud was discovered after a Knight’s Services employee, Matthew Williamson, died performing work at the shipyard. The subsequent worker’s compensation claim and scrutiny of the policy led to criminal charges for Kohn and Knight.

The maximum penalty Robert A. Kohn could receive is a fine of $250,000 and/or imprisonment of 20 years. Mr. Nettles said the case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Winston D. Holliday, Jr., and Peter T. Phillips.