CONCORD, NEW HAMPSHIRE: Margaret Ann-Roan Osborn, age 50, formerly of Log Street in Manchester, NH was sentenced to 6 months in federal prison for insurance fraud. Osborn had previously pleaded guilty in U.S. District Court to charges that she had obtained a New Hampshire Insurance Producer License by falsely denying that she had a criminal record, in violation of Title 18, United States Code, Section 1033(e)(1)(A). After learning of Osborn’s prior criminal record, the New Hampshire Insurance Department brought this case to the attention of the United States Attorney’s Office and Osborn was indicted by a Federal Grand Jury.

Federal law prohibits anyone who has previously been convicted of a felony involving dishonesty or a breach of trust from engaging in the business of insurance that affects interstate commerce unless that person seeks and obtains written permission from the Insurance Department. After being charged, Osborn admitted that she was untruthful in denying that she had a criminal record when she applied to the New Hampshire Insurance Department for a license. As a result of her fraudulent application, Osborn was issued a license and worked in Manchester, NH for a Maine Insurance company.

Osborn’s attorney argued today that she should not be sent to prison but instead should receive a probationary sentence. However, United States District Judge Paul Barbadoro, in citing Osborn’s history of prior fraud crimes, agreed with the government that a prison sentence was warranted. Osborn was previously convicted in federal court in Minnesota on charges of bank fraud in 1994 and served 6 months in federal prison. In 1998 she was sent back to federal prison for an additional 16 months on charges that she had committed fraud through the use of a stolen social security card.

After the sentencing, U.S. Attorney Tom Colantuono said: “It is important to the integrity of the insurance industry in New Hampshire that individuals with felony convictions for crimes of dishonesty not obtain licenses to conduct insurance by fraudulently withholding their criminal past from the Insurance Department. We appreciate the efforts of the Insurance Department and we will continue to work together to insure that this federal law is enforced.” Attorney Colantuono thanked Commissioner Roger Sevigny of the New Hampshire Insurance Department.

This case was investigated by the FBI with assistance from the Insurance Fraud Division of the New Hampshire Insurance Department.