A scheme run for an insurance fraud

1) As part of a money laundering action…

… purchasing of some savings and loans of poor value, because burdened with non-performing mortgages

2) purchasing of a small domestic insurance company, to be paid for with loans from the savings and loans

3) swapping the non-performing mortgages from the savings and loans for good bonds held by the insurance company

 

the savings and loans are now collateralized with profitable paper, making them very attractive, while the insurance company is sitting on a portfolio of non-performing mortgages

4) forming an offshore re-insurance company

5) writing off to the re-insurer the premiums owned by the insurance company, sending them straight back to the offshore trust.

6) solding for a handsome profit the savings and loans while the insurance company is doomed to go bankruptcy .