1 00:00:02,670 --> 00:00:09,630 In this episode of American Greed, bars, nightclubs, strip clubs, and big -name 2 00:00:09,630 --> 00:00:15,070 acts turn to insurance executive Jeffrey Cohen for the financial protection they 3 00:00:15,070 --> 00:00:18,230 need when crowds and booze mix. 4 00:00:18,750 --> 00:00:22,890 It's the what -ifs. That's what insurance is for, the what -ifs. With 5 00:00:22,890 --> 00:00:28,950 from coast to coast, Cohen's company brings in more than $100 million, and he 6 00:00:28,950 --> 00:00:29,950 lives large. 7 00:00:30,430 --> 00:00:34,570 He had a Porsche, he had a Bentley, an Aston Martin close to $200 ,000. 8 00:00:35,130 --> 00:00:38,110 But prosecutors say it's all a facade. 9 00:00:39,030 --> 00:00:44,350 Unexpectedly, we were notified by Jeff's companies that I was not on the policy. 10 00:00:44,630 --> 00:00:49,210 According to the government, Cohen uses a mountain of fake documents to make it 11 00:00:49,210 --> 00:00:54,130 appear his company has the cash it needs to provide the help he's promised. 12 00:00:54,450 --> 00:00:57,910 One of the things that was unique about this case was the number of different 13 00:00:57,910 --> 00:00:59,110 false representations. 14 00:00:59,760 --> 00:01:00,339 were involved. 15 00:01:00,340 --> 00:01:04,900 And when the feds close in, they say they're surprised by what they see. 16 00:01:05,120 --> 00:01:09,120 He did have a quality that most other fraud defendants don't have. 17 00:01:09,340 --> 00:01:11,740 And by what they hear. 18 00:01:12,100 --> 00:01:14,620 Because most other fraud defendants don't do what he did. 19 00:01:32,430 --> 00:01:35,330 It's the afternoon of June 20th, 2014. 20 00:01:36,270 --> 00:01:42,410 A former insurance executive named Jeffrey Cohen heads north in his white 21 00:01:42,410 --> 00:01:43,410 SUV. 22 00:01:43,590 --> 00:01:49,190 Not long ago, a judge in Delaware ordered the liquidation of Indemnity 23 00:01:49,190 --> 00:01:51,930 Corporation, or IIC. 24 00:01:52,330 --> 00:01:56,550 The company Cohen says he built with his own blood, sweat, and tears. 25 00:01:57,450 --> 00:02:01,350 A friend will later testify that Cohen has seemed off. 26 00:02:02,030 --> 00:02:03,350 like something wasn't right. 27 00:02:04,290 --> 00:02:09,110 And as he drives, he speaks into a recently purchased audio recorder. 28 00:02:09,509 --> 00:02:15,430 The only difference between a soldier killing somebody or an operative or a 29 00:02:15,430 --> 00:02:21,810 police officer or anybody is that there's a written law that says they can 30 00:02:21,810 --> 00:02:22,930 says that I can't. 31 00:02:24,270 --> 00:02:28,850 Cohen will later admit in court that in recent days he has been gathering 32 00:02:28,850 --> 00:02:33,280 information on James Travis Laster, The Delaware judge who ordered the 33 00:02:33,280 --> 00:02:34,800 liquidation of indemnity. 34 00:02:35,040 --> 00:02:39,320 And on Lieutenant Governor Matthew Den, the state's former insurance 35 00:02:39,320 --> 00:02:45,240 commissioner. He will also testify that with this information, he visits both 36 00:02:45,240 --> 00:02:46,240 their homes. 37 00:02:46,480 --> 00:02:52,280 Pretty surreal, considering I'm driving to Delaware right now to doubt out 38 00:02:52,280 --> 00:02:56,280 how I can attack Den and Laster. 39 00:02:58,030 --> 00:03:02,470 In case it's not obvious, this is no typical insurance story. 40 00:03:02,710 --> 00:03:06,110 And Jeffrey Cohen is no typical insurance executive. 41 00:03:17,370 --> 00:03:22,530 Robert McClintock is a Baltimore artist who alters photographs to make them look 42 00:03:22,530 --> 00:03:23,530 like paintings. 43 00:03:23,810 --> 00:03:29,570 Though he says he usually avoids human subjects, In 2012, one of Jeffrey 44 00:03:29,570 --> 00:03:35,470 employees at Indemnity Insurance Corporation contacts McClintock, asking 45 00:03:35,470 --> 00:03:37,450 be willing to paint the boss. 46 00:03:37,990 --> 00:03:42,990 Well, they just depicted this guy, Jeff, as a unique individual, and he's just 47 00:03:42,990 --> 00:03:47,570 different in the insurance industry, which I don't know what that meant, but 48 00:03:47,570 --> 00:03:48,810 could tell the guy had an edge. 49 00:03:50,070 --> 00:03:51,410 McClintock takes the job. 50 00:03:52,060 --> 00:03:56,300 And soon he receives the photo that Cohen wants transformed into a large 51 00:03:56,300 --> 00:03:57,420 portrait of himself. 52 00:03:57,920 --> 00:04:03,360 His face was contorted, like, don't mess with me. And he was flipping the bird. 53 00:04:04,740 --> 00:04:08,700 It was just kind of an old brother, you know. Who is this guy? 54 00:04:09,960 --> 00:04:10,960 What's he up to? 55 00:04:16,800 --> 00:04:19,920 Jeffrey Cohen's rise to insurance infamy. 56 00:04:20,510 --> 00:04:24,330 started shortly after high school, when he says he began working not as a 57 00:04:24,330 --> 00:04:25,910 broker, but as a bouncer. 58 00:04:26,870 --> 00:04:31,230 Cohen will later say he went on to learn other aspects of the nightclub industry 59 00:04:31,230 --> 00:04:36,690 as a bartender, a server, a manager, and even a partner running clubs. 60 00:04:37,250 --> 00:04:42,390 But after learning the ropes, Cohen says he finds himself drawn to the decidedly 61 00:04:42,390 --> 00:04:44,370 less exotic family business. 62 00:04:44,930 --> 00:04:47,390 His father owned an insurance company. 63 00:04:47,790 --> 00:04:52,190 His understanding of both sides of that business, the insurance side, from 64 00:04:52,190 --> 00:04:57,010 having that in his family, as well as being involved in the bar business for 65 00:04:57,010 --> 00:05:01,850 many years, from our understanding, it was that he put those two together and 66 00:05:01,850 --> 00:05:04,450 created the specialized insurance business. 67 00:05:05,190 --> 00:05:10,230 Cohen says that in a bar one night, he sketches out a business plan on a 68 00:05:10,230 --> 00:05:11,250 beverage napkin. 69 00:05:12,400 --> 00:05:16,720 Nightlife establishments need insurance, and his company, which will come to be 70 00:05:16,720 --> 00:05:20,520 called Indemnity Insurance Corporation, will provide it. 71 00:05:21,160 --> 00:05:26,500 Britt Swan is a Washington, D .C. area bar owner who says he first turns to 72 00:05:26,500 --> 00:05:31,960 Cohen for coverage in the early 2000s. He was pleasant. He was helpful. Didn't 73 00:05:31,960 --> 00:05:33,260 seem to have no in his vocabulary. 74 00:05:33,580 --> 00:05:35,760 He said he could take care of it, and he did. 75 00:05:36,520 --> 00:05:38,440 Swan and others say... 76 00:05:38,800 --> 00:05:42,860 that the insurance Cohen's company provides is a vital necessity at 77 00:05:42,860 --> 00:05:46,480 establishments which are, by their very nature, full of risk. 78 00:05:46,820 --> 00:05:51,860 Well, outside of your normal slip and fall, assault and battery, you do have 79 00:05:51,860 --> 00:05:57,420 real big problem of over -serving or intoxicated patrons, people claiming 80 00:05:57,420 --> 00:05:59,740 you over -served them or you intoxicated them. 81 00:06:00,060 --> 00:06:04,980 If a patron's over -served at the bar and gets in an accident or harms others. 82 00:06:05,600 --> 00:06:09,620 that bar that served that patron could obviously be held liable and be sued for 83 00:06:09,620 --> 00:06:10,620 that. 84 00:06:10,720 --> 00:06:15,420 Swan says that in exchange for the premiums he pays, he expects help if 85 00:06:15,420 --> 00:06:16,560 something bad happens. 86 00:06:17,240 --> 00:06:21,460 Well, if a claim came up, I would expect that he would assign someone to it. 87 00:06:21,540 --> 00:06:23,740 They would, of course, come gather the facts. 88 00:06:24,020 --> 00:06:27,700 And if we were at fault, I would expect them to make it right. 89 00:06:27,920 --> 00:06:32,540 But if they found that we were not at fault, I would expect them to defend us. 90 00:06:34,190 --> 00:06:39,010 Indemnity's website states that no other carrier can offer the level of 91 00:06:39,010 --> 00:06:42,630 protection and risk management that we deliver every day. 92 00:06:42,890 --> 00:06:48,230 And bars shopping for insurance can do more than just take Indemnity's word for 93 00:06:48,230 --> 00:06:51,750 it. Thanks to Cohen, the company has the rating to prove it. 94 00:06:52,200 --> 00:06:56,220 AMBEST is widely respected in the insurance industry. It's a rating agency 95 00:06:56,220 --> 00:07:01,100 that's used by lots of policyholders and by other insurance companies in 96 00:07:01,100 --> 00:07:04,520 determining very important aspects to an insurance company's operations. 97 00:07:04,960 --> 00:07:11,160 It says something about the financial stability of the insurance company and 98 00:07:11,160 --> 00:07:15,560 quality of the insurance company. And it also reflects the size. 99 00:07:15,780 --> 00:07:20,380 You need to have enough surplus in order to pay any potential claims that would 100 00:07:20,380 --> 00:07:21,380 come through. 101 00:07:21,740 --> 00:07:26,260 Cohen's relationship with AMBEST begins when he first visits their New Jersey 102 00:07:26,260 --> 00:07:27,660 headquarters in 2008. 103 00:07:28,940 --> 00:07:35,240 Cohen will later admit in court that he tells AMBEST one of his companies, LMNH, 104 00:07:35,520 --> 00:07:39,240 will have $7 million in assets safely stashed away. 105 00:07:40,180 --> 00:07:45,680 Later, he sends them a copy of a bank statement from RBC, the Royal Bank of 106 00:07:45,680 --> 00:07:51,640 Canada. showing LMNH has $12 .5 million in its account there. 107 00:07:52,380 --> 00:07:59,380 In turn, indemnity receives an A-, or excellent rating, due in part, A .M. 108 00:07:59,380 --> 00:08:03,280 says, to the company's excellent capitalization levels. 109 00:08:03,680 --> 00:08:09,020 The A - rating was a big deal for the company. It allowed him to have certain 110 00:08:09,020 --> 00:08:12,490 brokers. offer his product to potential policyholders. 111 00:08:12,830 --> 00:08:18,030 That allowed his company to grow because it showed that his company had a lot of 112 00:08:18,030 --> 00:08:23,110 cash on hand, basically, so he would be able to cover those large claims in case 113 00:08:23,110 --> 00:08:26,370 they did come in from large venues or large clients. 114 00:08:29,150 --> 00:08:34,270 Though Cohen will later say the rating had little effect on his business, he 115 00:08:34,270 --> 00:08:37,470 sends out gloating posters to those who doubted him. 116 00:08:37,929 --> 00:08:40,770 featuring a hand gesture he seems to like. 117 00:08:41,110 --> 00:08:44,250 And he mentions the rating prominently elsewhere. 118 00:08:44,790 --> 00:08:48,750 Mr. Cohen would then put it on various things associated with indemnity, 119 00:08:48,790 --> 00:08:53,990 including the website and mailings that indemnity had and other methods that he 120 00:08:53,990 --> 00:08:55,190 used to grow the company. 121 00:08:56,190 --> 00:09:01,190 Despite the gloating, Cohen says his company was more than just an AM Best 122 00:09:01,190 --> 00:09:05,990 rating and that the nightlife establishments he insured were thrilled 123 00:09:05,990 --> 00:09:06,990 service he offered. 124 00:09:07,310 --> 00:09:13,030 According to Cohen, his employees help bar owners design their space and train 125 00:09:13,030 --> 00:09:17,930 employees to prevent potentially expensive incidents before they occur. 126 00:09:18,350 --> 00:09:22,930 And when the inevitable happens, Cohen and others say, Indemnity Insurance 127 00:09:22,930 --> 00:09:28,290 Corporation has a legal strategy of fighting claims and not backing down. 128 00:09:28,690 --> 00:09:33,550 As we alleged in court filings and presented evidence from other cases 129 00:09:33,550 --> 00:09:39,130 the country, It appeared to be indemnity practice to be highly aggressive in 130 00:09:39,130 --> 00:09:40,310 defending its claims. 131 00:09:40,750 --> 00:09:45,810 Andrew Cohen, who is of no relation to Jeffrey, is one of many lawyers who 132 00:09:45,810 --> 00:09:48,790 himself on the opposing side of an indemnity lawsuit. 133 00:09:49,350 --> 00:09:54,090 After representing a family in a wrongful death suit against a bar 134 00:09:54,090 --> 00:09:57,810 indemnity, Jeffrey Cohen sues him personally. 135 00:09:58,400 --> 00:10:02,640 It was no holds barred. It was scorched earth. It was unlike anything anybody 136 00:10:02,640 --> 00:10:06,620 I've ever practiced with in almost 25 years has ever seen. 137 00:10:07,240 --> 00:10:13,000 In court, Cohen admits he can be belligerent, arrogant, and sometimes 138 00:10:13,000 --> 00:10:14,000 a prick. 139 00:10:14,180 --> 00:10:18,880 And as the video deposition shows, just getting him to answer a simple question 140 00:10:18,880 --> 00:10:21,100 can at times be difficult. 141 00:10:22,200 --> 00:10:23,860 What's your current address, Mr. Cohen? 142 00:10:24,420 --> 00:10:27,560 When? What's your current address? When? 143 00:10:29,280 --> 00:10:32,580 Where do you currently reside? That means at the moment. Currently means at 144 00:10:32,580 --> 00:10:33,820 moment. Where do you reside now? 145 00:10:36,180 --> 00:10:37,180 Checking. 146 00:10:38,080 --> 00:10:42,240 Next, see how Jeffrey Cohen's risky business pays off. 147 00:10:42,580 --> 00:10:44,980 I've actually been in two of the four homes that he owned. 148 00:10:45,200 --> 00:10:46,860 They were both very beautiful homes. 149 00:10:47,340 --> 00:10:49,460 Something you would see, like, in a movie. 150 00:11:07,850 --> 00:11:13,390 For years, businesses in the nightlife industry paid big bucks to Indemnity 151 00:11:13,390 --> 00:11:18,170 Insurance Corporation, expecting the company to cover them if and when the 152 00:11:18,170 --> 00:11:19,170 unthinkable occurs. 153 00:11:20,050 --> 00:11:25,230 To prove the company's ability to do so, Jeffrey Cohen turns to insurance 154 00:11:25,230 --> 00:11:28,050 ratings agency AMBEST. 155 00:11:28,270 --> 00:11:32,530 The evidence we presented in court showed that he had multiple different 156 00:11:32,530 --> 00:11:33,830 interactions with them. 157 00:11:34,200 --> 00:11:38,420 He sent them emails. He called them on the phone. He went up to A .M. Best 158 00:11:38,420 --> 00:11:41,640 headquarters and met with them. And so there was an extensive interaction 159 00:11:41,640 --> 00:11:46,000 between A .M. Best and indemnity and between them and Mr. Cohen. 160 00:11:46,360 --> 00:11:51,120 But the ratings agency is not the only entity to whom he must demonstrate his 161 00:11:51,120 --> 00:11:56,540 company's ability to pay up when booze causes trouble and trouble leads to 162 00:11:56,540 --> 00:12:02,320 claims. State regulators are looking at the financial condition of the insurance 163 00:12:02,320 --> 00:12:06,090 company. The insurance industry is a highly regulated industry. 164 00:12:06,570 --> 00:12:10,930 Because the individual policyholders, they want to be able to give their money 165 00:12:10,930 --> 00:12:15,130 and trust that the company that they're giving the money to has the ability to 166 00:12:15,130 --> 00:12:16,130 pay claims. 167 00:12:16,810 --> 00:12:21,970 After reviewing Indemnity's books, regulators give Cohen's company the 168 00:12:21,970 --> 00:12:22,970 up. 169 00:12:23,490 --> 00:12:29,290 And with all the right boxes checked, Indemnity continues to sign up bars, 170 00:12:29,290 --> 00:12:31,830 clubs, and other party -filled venues. 171 00:12:32,720 --> 00:12:37,120 When he first launches, Cohen says it's just him and his dog. 172 00:12:37,380 --> 00:12:42,420 But he claims in court that his company grows to employ close to 100 people. 173 00:12:42,960 --> 00:12:47,780 From his main office in suburban Baltimore, indemnity provides coverage 174 00:12:47,780 --> 00:12:51,320 than 3 ,000 policyholders from coast to coast. 175 00:12:51,640 --> 00:12:56,360 In addition to watering holes in restaurants, Cohen testifies that he 176 00:12:56,360 --> 00:13:01,860 insures big -name acts like the Rolling Stones, U2, and Jay -Z. 177 00:13:02,620 --> 00:13:07,700 American Greed was unable to confirm this assertion. From 2008 through 178 00:13:07,700 --> 00:13:14,300 2012, he brought in over $100 million of premiums. Cohen's business is 179 00:13:14,300 --> 00:13:18,560 booming, and he seems to be enjoying his success. According to documents 180 00:13:18,560 --> 00:13:24,100 presented in court in April 2008, when he received his AM Best rating, his 181 00:13:24,100 --> 00:13:27,420 salary is already $44 ,000 per month. 182 00:13:27,740 --> 00:13:30,260 Five years later, it has more than doubled. 183 00:13:30,730 --> 00:13:35,650 In 2012, 2013, it was close to $100 ,000 a month in salary. 184 00:13:36,070 --> 00:13:40,250 He would also have $100 ,000 or $200 ,000 bonuses on top of that. 185 00:13:40,990 --> 00:13:47,370 Cohen's companies buy or lease him a Porsche, a Bentley, two Lexuses, an 186 00:13:47,370 --> 00:13:52,450 Martin, a Land Rover, and a Mustang, whose combined value is more than $1 187 00:13:52,450 --> 00:13:53,450 million. 188 00:13:54,010 --> 00:13:58,750 These vehicles sport license plates such as Risk Taker. 189 00:14:00,080 --> 00:14:04,520 As evidence at his sentencing will show, Cohen also owns a waterfront home in 190 00:14:04,520 --> 00:14:07,960 Fort Lauderdale, Florida, and another outside Baltimore. 191 00:14:09,180 --> 00:14:14,680 The one in Maryland was full of high -end furniture, spiral staircases as you 192 00:14:14,680 --> 00:14:19,020 walk in that are in a very open foyer, something you would see, like, in a 193 00:14:19,020 --> 00:14:20,020 movie. 194 00:14:20,520 --> 00:14:25,160 According to evidence presented in court, Cohen spends more than half a 195 00:14:25,160 --> 00:14:29,120 dollars of company money on private jet trips to Florida and back. 196 00:14:30,280 --> 00:14:36,760 Court transcripts say he owns a $50 ,000 Rolex and buys his wife a $260 197 00:14:36,760 --> 00:14:38,800 ,000 engagement ring. 198 00:14:39,600 --> 00:14:46,360 And a newspaper report citing court records says Cohen spent $83 ,000 199 00:14:46,360 --> 00:14:51,280 over two months primarily at adult entertainment venues in Las Vegas. 200 00:14:52,460 --> 00:14:57,080 According to the article, Cohen denied the allegation, saying it was actually 201 00:14:57,080 --> 00:15:01,800 $100 ,000 and that it was for legitimate marketing purposes. 202 00:15:04,920 --> 00:15:10,500 Up next, Jeffrey Cohen's business seems legit. But when a bar owner looks for 203 00:15:10,500 --> 00:15:13,100 help, he learns he's on his own. 204 00:15:13,420 --> 00:15:17,840 My only thought at the time was he had a million reasons to do that because our 205 00:15:17,840 --> 00:15:21,540 policy limit was a million dollars. And he just wasn't going to pay anything. 206 00:15:35,310 --> 00:15:38,890 Mr. Cohen, before the break, you mentioned the name Brit Swan. 207 00:15:39,130 --> 00:15:40,130 Who is Brit Swan? 208 00:15:41,390 --> 00:15:42,390 A human being. 209 00:15:53,450 --> 00:15:59,250 In October 2009, Britt Swann receives word that his Washington, D .C. bar, 210 00:15:59,530 --> 00:16:01,450 Modern, is being sued. 211 00:16:02,650 --> 00:16:08,990 It was alleged that we failed to check the ID of a young lady, and as a result, 212 00:16:09,030 --> 00:16:11,550 we served her alcohol and she became intoxicated. 213 00:16:12,150 --> 00:16:18,970 Subsequently, after that, there was an automobile accident in which a passenger 214 00:16:18,970 --> 00:16:20,870 was killed. 215 00:16:21,640 --> 00:16:26,860 and the family of that passenger began a lawsuit against us. 216 00:16:28,640 --> 00:16:33,600 Attorney Andrew Cohen, who is no longer in private practice, once represented 217 00:16:33,600 --> 00:16:35,580 the family who files the lawsuit. 218 00:16:36,080 --> 00:16:40,840 They went to the court system to seek accountability for the death of their 219 00:16:40,840 --> 00:16:47,240 daughter. Based on all the factors at play in the case, we believed that we 220 00:16:47,240 --> 00:16:51,180 damages. in excess of the million -dollar insurance policy that we could 221 00:16:51,180 --> 00:16:52,180 proven at trial. 222 00:16:53,960 --> 00:16:58,340 For an uninsured bar, damages like this could be disastrous. 223 00:16:59,040 --> 00:17:03,020 But Modern has been paying for coverage through Indemnity Insurance Corporation, 224 00:17:03,440 --> 00:17:06,960 and Swan says he thinks Cohen's company has his back. 225 00:17:08,839 --> 00:17:15,300 Unexpectedly, we were notified by Jeff's companies that I was not on the policy. 226 00:17:15,960 --> 00:17:22,339 And as a result, I was not an additional insured, and he was pulling the legal 227 00:17:22,339 --> 00:17:24,359 defense team away from me. 228 00:17:25,500 --> 00:17:30,980 To do so, Indemnity produces an insurance document called a binder that 229 00:17:30,980 --> 00:17:33,980 coverage to Modern's operator, J .C. Mudd. 230 00:17:34,220 --> 00:17:39,600 But never mention Swan's company, the bar's owner, Georgetown Bibliotheque. 231 00:17:41,410 --> 00:17:45,330 However, attorney Andrew Cohen says he obtains a different version of the 232 00:17:45,330 --> 00:17:51,490 binder, which in sworn testimony he calls the original unaltered version. 233 00:17:52,410 --> 00:17:56,470 Toward the top of the page, under additional comments, Georgetown 234 00:17:56,470 --> 00:17:59,610 Inc. is added as it named in short. And that's, of course, the critical point, 235 00:17:59,670 --> 00:18:02,070 that Georgetown Bibliotheque was added to the policy. 236 00:18:02,330 --> 00:18:06,730 But then if you look at the binder that we referred to in the litigation as the 237 00:18:06,730 --> 00:18:10,530 altered binder, that line is missing. It appears to have been deleted. 238 00:18:11,020 --> 00:18:17,500 And as a consequence, all the text underneath that line has moved up so 239 00:18:17,500 --> 00:18:21,940 this version the word approval is out of this box and there's no white space 240 00:18:21,940 --> 00:18:27,420 between it and the words underneath it, whereas on this version the word 241 00:18:27,420 --> 00:18:32,580 approval is in that box and there is some white space underneath it. So to 242 00:18:32,580 --> 00:18:37,320 casual observer, it certainly looks like the original binder was simply altered 243 00:18:37,320 --> 00:18:39,740 to have the reference to Georgetown Bibliotheque deleted. 244 00:18:41,520 --> 00:18:45,460 While Jeffrey Cohen points out that no court has ever ruled on whether he 245 00:18:45,460 --> 00:18:50,880 altered the binder, in court documents, prosecutors say the insurance executive 246 00:18:50,880 --> 00:18:54,280 fraudulently denied coverage in the case. 247 00:18:54,620 --> 00:18:59,760 Though Cohen denies these assertions, prosecutor Joyce McDonald says there's a 248 00:18:59,760 --> 00:19:02,560 reason for his alleged switcheroo. 249 00:19:02,860 --> 00:19:08,200 The problem that Mr. Cohen was addressing by denying coverage and by 250 00:19:08,200 --> 00:19:09,200 the policy. 251 00:19:09,420 --> 00:19:12,180 was not having enough money to pay the claim. 252 00:19:12,980 --> 00:19:16,960 Cohen maintains he never lacked money to pay claims. 253 00:19:17,160 --> 00:19:22,560 And for years, he has been showing AMBEST and various state regulators that 254 00:19:22,560 --> 00:19:27,120 company has plenty of money available to help bars and other nightlife 255 00:19:27,120 --> 00:19:29,520 businesses who've come to him for insurance. 256 00:19:30,280 --> 00:19:31,380 But does it? 257 00:19:34,800 --> 00:19:40,340 In 2012, Delaware's Department of Insurance begins a routine examination 258 00:19:40,340 --> 00:19:44,020 indemnity, and an analyst comes asking questions. 259 00:19:44,600 --> 00:19:49,140 My understanding is that the Delaware insurance commissioner's employee was 260 00:19:49,140 --> 00:19:54,300 trying to verify the assets of the company. She was trying to verify funds 261 00:19:54,300 --> 00:19:56,860 were available in case the company needed it. 262 00:19:57,230 --> 00:20:02,890 As part of the review, the analyst seeks independent confirmation of a $5 .1 263 00:20:02,890 --> 00:20:06,850 million balance and then that he claims to have a certain bank. 264 00:20:07,410 --> 00:20:11,970 In court, Cohen later admits that he directs the analyst to send a 265 00:20:11,970 --> 00:20:16,090 form to the bank, providing an address in Cockeysville, Maryland. 266 00:20:16,710 --> 00:20:21,670 After sending the blank form to this address, the analyst gets it back, 267 00:20:21,670 --> 00:20:23,650 with the name of a real bank employee. 268 00:20:24,410 --> 00:20:28,310 It confirms indemnity's $5 .1 million account balance. 269 00:20:28,930 --> 00:20:31,130 But something isn't quite right. 270 00:20:31,590 --> 00:20:35,010 The analyst for the Delaware Department of Insurance followed up with a 271 00:20:35,010 --> 00:20:39,270 confirmation by attempting to contact the named individual on the bank 272 00:20:39,270 --> 00:20:43,770 confirmation. Gets a hold of that individual at the bank. That individual 273 00:20:43,770 --> 00:20:45,930 represents that they didn't sign a confirmation. 274 00:20:46,270 --> 00:20:49,850 They don't know anything about it, and it gives her great concern. 275 00:20:51,150 --> 00:20:56,090 Cohen later testifies that the address he provides doesn't belong to a bank. 276 00:20:56,330 --> 00:21:01,730 It's just a P .O. box in a suburban post office that he says he opened days 277 00:21:01,730 --> 00:21:03,590 before sending it to regulators. 278 00:21:04,110 --> 00:21:09,170 He was the one controlling what information was being sent out on behalf 279 00:21:09,170 --> 00:21:14,690 P .O. box and also receiving the information that was coming in. He 280 00:21:14,690 --> 00:21:15,890 be this. 281 00:21:16,190 --> 00:21:20,110 representative from this particular financial institution in order to 282 00:21:20,110 --> 00:21:21,950 back to the regulators. 283 00:21:22,810 --> 00:21:28,210 According to voluminous court records and Cohen's own admissions, this is not 284 00:21:28,210 --> 00:21:29,350 one -time deal. 285 00:21:29,570 --> 00:21:34,230 A federal appeals court will find that Cohen has created a web of false and 286 00:21:34,230 --> 00:21:39,430 fraudulent financial documents to help him misrepresent the financial status of 287 00:21:39,430 --> 00:21:40,430 his company. 288 00:21:40,720 --> 00:21:44,200 One of the things that was unique about this case was the number of different 289 00:21:44,200 --> 00:21:46,280 false representations that were involved. 290 00:21:46,940 --> 00:21:51,580 Typically, he would doctor up a bank statement showing that a certain bank 291 00:21:51,580 --> 00:21:55,880 holding money for him. Whatever he needed at the time, either to get an 292 00:21:55,880 --> 00:22:00,760 rating or to defeat an audit or to pacify the regulators, he would create 293 00:22:00,760 --> 00:22:02,500 something fraudulent to get that done. 294 00:22:03,560 --> 00:22:06,480 AMBES declined and offered a comment for the show. 295 00:22:07,280 --> 00:22:12,280 And Cohen says he is doing more than just making fake financial documents. 296 00:22:12,760 --> 00:22:17,920 In his plea agreement and under cross -examination, he admits that for years 297 00:22:17,920 --> 00:22:22,600 he's been tricking auditors when they go to verify the money indemnity says it 298 00:22:22,600 --> 00:22:23,600 has in the bank. 299 00:22:23,940 --> 00:22:28,880 He's done so by setting up e -mail addresses that sound like those of real 300 00:22:28,880 --> 00:22:34,380 banks. He says he's been providing these addresses to auditors, then using them 301 00:22:34,380 --> 00:22:36,200 to pose as bank employees. 302 00:22:36,800 --> 00:22:39,480 to falsely confirm his own account balances. 303 00:22:39,800 --> 00:22:41,880 So he was the one receiving the confirmation. 304 00:22:42,280 --> 00:22:46,740 He was the one that was posing as the bank to confirm that balance and sending 305 00:22:46,740 --> 00:22:49,260 it back to the auditors. The auditors think that they're getting it 306 00:22:49,260 --> 00:22:53,000 independently from the bank, or in essence, he's confirming his own fake 307 00:22:53,000 --> 00:22:54,000 balance. 308 00:22:54,140 --> 00:22:59,200 Though he admits in court that he's faked multiple confirmations, Cohen will 309 00:22:59,200 --> 00:23:04,400 later tell a jury that his company was extremely profitable and that he always 310 00:23:04,400 --> 00:23:06,120 had enough money to pay claims. 311 00:23:07,400 --> 00:23:12,200 But federal prosecutors argue that Cohen's true financial picture becomes 312 00:23:12,200 --> 00:23:17,660 when you subtract his misrepresentations and factored out a multimillion -dollar 313 00:23:17,660 --> 00:23:22,020 IOU owed to indemnity from another Cohen -controlled company. 314 00:23:22,220 --> 00:23:28,100 It's an asset that prosecutors call uncollectible, though Cohen vehemently 315 00:23:28,100 --> 00:23:29,100 disagrees. 316 00:23:29,520 --> 00:23:33,740 So this was the exhibit that we introduced during the litigation to talk 317 00:23:33,740 --> 00:23:38,480 the reported assets of the company versus what the agent's investigation 318 00:23:38,600 --> 00:23:43,740 right? Right. The blue represents what Cohen was reporting as being the 319 00:23:43,740 --> 00:23:49,200 available funds to pay claims, and he's consistently showing a $15 million 320 00:23:49,200 --> 00:23:52,600 surplus, and it jumps up to $23 million. 321 00:23:53,080 --> 00:23:58,220 But the red is what the government was able to prove was the truth. 322 00:23:58,520 --> 00:24:02,480 Including a negative balance in 2011 of $10 million. 323 00:24:05,300 --> 00:24:11,040 That money needed to be available in case somebody came through with a claim 324 00:24:11,040 --> 00:24:12,040 that he needed to pay out. 325 00:24:12,560 --> 00:24:13,560 It's the what if. 326 00:24:14,120 --> 00:24:16,180 That's what insurance is for, the what if. 327 00:24:20,680 --> 00:24:22,380 Next on American Greed. 328 00:24:22,990 --> 00:24:26,290 Caught red -handed, Cohen admits to many of his crimes. 329 00:24:26,650 --> 00:24:30,170 And later, investigators make a chilling discovery. 330 00:24:30,690 --> 00:24:34,470 These particular items were being brought to our attention, and it started 331 00:24:34,470 --> 00:24:37,030 seem like this was not the typical white -collar case. 332 00:24:54,090 --> 00:24:58,770 For years, Jeffrey Cohen's company has been ensuring hot spots across the 333 00:24:58,770 --> 00:24:59,770 nation. 334 00:25:01,310 --> 00:25:04,390 But the party's about to come to an end. 335 00:25:09,670 --> 00:25:16,170 In May 2013, Delaware officials filed papers in the state's Chancery Court. 336 00:25:16,730 --> 00:25:21,210 claiming that Indemnity Insurers Corporation is in a precarious financial 337 00:25:21,210 --> 00:25:23,850 position due to multiple acts of fraud. 338 00:25:24,290 --> 00:25:30,670 In response, Judge James Travis Laster grants an order allowing the seizure of 339 00:25:30,670 --> 00:25:32,230 Jeffrey Cohen's life work. 340 00:25:32,670 --> 00:25:38,310 They put the insurance company into receivership because they found that, 341 00:25:38,390 --> 00:25:43,550 it wasn't being operated well, but secondly, that it was not able to meet 342 00:25:43,550 --> 00:25:44,990 obligations to... 343 00:25:45,400 --> 00:25:51,680 It's insured and that it didn't have enough funds to operate on a going 344 00:25:51,680 --> 00:25:52,680 basis. 345 00:25:53,000 --> 00:25:55,440 And so it couldn't continue. 346 00:25:57,680 --> 00:26:01,960 Approximately two months after the seizure, the state moves to liquidate 347 00:26:01,960 --> 00:26:04,440 business that some refer to as Cohen's baby. 348 00:26:05,180 --> 00:26:08,740 And he is, in his own words, kicked out of indemnity. 349 00:26:10,480 --> 00:26:15,640 Cohen still asserts that at the time, his company was financially healthy, 350 00:26:15,640 --> 00:26:20,380 it was not legally insolvent, and that any problems his policyholders later 351 00:26:20,380 --> 00:26:24,840 faced were caused by the receiver who took over, not by him. 352 00:26:25,520 --> 00:26:30,120 The Delaware Department of Insurance declined to comment to American Greed. 353 00:26:30,660 --> 00:26:34,200 Mr. Cohen doesn't take well that the company shut down. 354 00:26:34,420 --> 00:26:36,280 It's a company that he started himself. 355 00:26:37,050 --> 00:26:40,150 from the ground up, grew to a large insurance company. 356 00:26:40,590 --> 00:26:45,530 According to Judge Laster, Cohen shuts off indemnity's phone service and 357 00:26:45,530 --> 00:26:47,230 attempts to shut off his electricity. 358 00:26:47,790 --> 00:26:53,250 Judge Laster also finds that Cohen violates numerous court orders, 359 00:26:53,250 --> 00:26:57,990 requiring him to return a company -owned Mustang and an Aston Martin to the 360 00:26:57,990 --> 00:26:59,290 people now in charge. 361 00:26:59,790 --> 00:27:03,750 The Ford Mustang was parked directly in front of the front doors of the office 362 00:27:03,750 --> 00:27:05,070 building, blocking the entrance. 363 00:27:05,600 --> 00:27:10,360 The Aston Martin was parked in the parking lot, but in a fashion to block 364 00:27:10,360 --> 00:27:11,660 through the parking lot. 365 00:27:12,520 --> 00:27:15,640 But justice is coming for Jeffrey Cohen. 366 00:27:16,340 --> 00:27:22,060 In October 2013, attorneys working for the state of Delaware bring what they've 367 00:27:22,060 --> 00:27:26,500 learned about Indemnity Insurance Corporation to the U .S. Attorney's 368 00:27:26,500 --> 00:27:28,600 federal investigators in Baltimore. 369 00:27:29,370 --> 00:27:35,390 They had discovered that a bank confirmation had been forged, and that 370 00:27:35,390 --> 00:27:40,530 $5 million, which is a significant amount of money. They felt it was a 371 00:27:40,530 --> 00:27:42,810 financial fraud and that we should look at it. 372 00:27:43,470 --> 00:27:48,570 Months later, agents search Cohen's former offices, where they seize various 373 00:27:48,570 --> 00:27:54,110 records. Eventually, investigators find that Cohen's fraud extends far beyond 374 00:27:54,110 --> 00:27:57,350 the misrepresentations first uncovered in Delaware. 375 00:27:58,360 --> 00:28:02,760 It was obvious he was a very smart man. And you could actually see it in the way 376 00:28:02,760 --> 00:28:03,980 he committed the fraud. 377 00:28:04,220 --> 00:28:10,900 He learned as he went what the different regulators or auditors were looking for 378 00:28:10,900 --> 00:28:17,340 and how they would proceed. And he was very energetic and he was on it, but he 379 00:28:17,340 --> 00:28:18,740 was clever in what he did. 380 00:28:19,220 --> 00:28:24,920 On June 24th, a grand jury indicts Jeffrey Cohen on five counts of making 381 00:28:24,920 --> 00:28:26,540 statements to an insurance regulator. 382 00:28:27,450 --> 00:28:31,930 And the next day, agents come to Cohen's home with an arrest warrant in hand. 383 00:28:32,450 --> 00:28:36,530 Our thought is that this is going to be a search warrant for financial documents 384 00:28:36,530 --> 00:28:40,130 to documents that provided evidence of the misstatements to the regulators. 385 00:28:41,130 --> 00:28:45,850 According to an FBI memo of his interview with federal agents from that 386 00:28:45,990 --> 00:28:52,530 Cohen admits he booked a bank statement, posed as bank employees to confirm 387 00:28:52,530 --> 00:28:54,230 various bank account balances, 388 00:28:55,150 --> 00:28:57,650 and says he faked it till I made it. 389 00:29:01,250 --> 00:29:06,850 Next. Until now, the case against Cohen has seemed like many other frauds, but 390 00:29:06,850 --> 00:29:11,030 agents' chilling discoveries turn the investigation upside down. 391 00:29:11,390 --> 00:29:14,990 One of the investigators who was searching said, oh, you have to come see 392 00:29:14,990 --> 00:29:17,250 notebook. And I was like, well, what's in the notebook? 393 00:29:17,570 --> 00:29:18,650 He's like, you have to come see. 394 00:29:19,370 --> 00:29:21,070 What has Cohen been planning? 395 00:29:21,610 --> 00:29:26,790 Inspect the strange items uncovered by investigators at AmericanGreed .cnbc 396 00:29:26,790 --> 00:29:29,690 .com. Want inside information from the show? 397 00:29:29,890 --> 00:29:31,770 Join the Greed social network. 398 00:29:32,190 --> 00:29:34,530 Like us on American Greed's Facebook page. 399 00:29:34,930 --> 00:29:35,950 We'll be right back. 400 00:29:49,960 --> 00:29:54,400 As one group of agents talks to Jeffrey Cohen about the fraud at Indemnity 401 00:29:54,400 --> 00:30:00,240 Insurance Corporation, or IIC, others searches more than 8 ,000 square foot 402 00:30:00,240 --> 00:30:04,820 home, where they find much more than just evidence of a nightclub insurance 403 00:30:04,820 --> 00:30:05,820 scam. 404 00:30:06,380 --> 00:30:11,180 One of the investigators who was searching came up to myself and another 405 00:30:11,180 --> 00:30:14,040 agent and said, oh, you have to come see this notebook. 406 00:30:14,380 --> 00:30:16,200 And I was like, well, what's in the notebook? 407 00:30:16,520 --> 00:30:17,700 He's like, you have to come see. 408 00:30:18,940 --> 00:30:22,800 Inside a plain purple pad, two words stick out. 409 00:30:23,780 --> 00:30:27,300 Targetless. NSA area, D .C. federal building. 410 00:30:27,720 --> 00:30:31,840 Maryland government and judges, Delaware folk, IIC folk. 411 00:30:32,360 --> 00:30:35,200 Always carry a loaded .45 for end. 412 00:30:35,480 --> 00:30:39,220 Have to carry at all times. Keep local when anywhere. 413 00:30:39,720 --> 00:30:42,260 Avoid cameras on exit or wear disguise. 414 00:30:42,840 --> 00:30:47,700 As evidence in court will later show, this is not their only discovery. 415 00:30:48,440 --> 00:30:53,820 In Cohen's Lexus, agents find a contractor's clipboard containing 416 00:30:53,820 --> 00:30:58,220 on James Travis Laster, the Delaware judge who permitted the liquidation of 417 00:30:58,220 --> 00:30:59,640 Cohen's company months earlier. 418 00:31:00,020 --> 00:31:05,180 It also contains maps with directions to Laster's home and the home of 419 00:31:05,180 --> 00:31:08,000 Delaware's former insurance commissioner, Matthew Den. 420 00:31:08,220 --> 00:31:11,520 And there's a page with another kind of directions as well. 421 00:31:11,960 --> 00:31:15,180 These are how to make a thermite firebomb. 422 00:31:15,980 --> 00:31:18,020 most useful in riot situations. 423 00:31:19,640 --> 00:31:23,340 As they continue their search, agents find more. 424 00:31:23,700 --> 00:31:29,500 This is a tactical backpack that was found in Mr. Cohen's residence, packed 425 00:31:29,500 --> 00:31:36,220 several wigs. Wig here, another wig here, third wig here, 426 00:31:36,380 --> 00:31:41,000 a Smith and Wesson special ops knife, a gas mask. 427 00:31:41,610 --> 00:31:47,130 Emergency bandage trauma wound dressing for hemorrhage control. A military cap 428 00:31:47,130 --> 00:31:52,090 with a spike weapon that you can use to put on the back of your head. 429 00:31:52,310 --> 00:31:56,410 One mask, another mask, another mask. 430 00:31:57,050 --> 00:31:58,050 Artificial mustache. 431 00:31:58,590 --> 00:32:02,530 We didn't understand why someone would have this packed up right ago. 432 00:32:03,330 --> 00:32:07,410 Then, in Cohen's garage, agents make another concerning discovery. 433 00:32:08,780 --> 00:32:12,180 A large black rifle with an unusual scope. 434 00:32:12,700 --> 00:32:17,880 The rifle allows someone that's not that experienced or maybe very inexperienced 435 00:32:17,880 --> 00:32:22,780 at shooting any type of firearm and gives them the ability to be very 436 00:32:23,420 --> 00:32:27,960 Through that scope, they can look at their target up to hundreds of yards 437 00:32:28,220 --> 00:32:32,540 and as long as they can hit that button and tag it at some point, whenever the 438 00:32:32,540 --> 00:32:35,540 gun senses that it hit the target again, it'll fire the gun. 439 00:32:39,660 --> 00:32:44,940 It's not the only weapon seized by agents as they search Cohen's home and 440 00:32:44,940 --> 00:32:45,940 other location. 441 00:32:46,800 --> 00:32:50,560 On any search warrant, you don't know what you're going to find when you go 442 00:32:50,560 --> 00:32:55,080 through those doors, but this was very out of the ordinary. 443 00:32:55,920 --> 00:33:01,360 Agents have been asking Cohen about his insurance scam, but now they have other 444 00:33:01,360 --> 00:33:06,060 questions. Cohen tries to assure them he never meant harm to anyone. 445 00:33:06,830 --> 00:33:11,730 According to an FBI memorandum of his interview from the day of his arrest, he 446 00:33:11,730 --> 00:33:16,790 explains his notebook by saying he was writing a story about a guy who goes 447 00:33:16,790 --> 00:33:18,390 and then changes the world. 448 00:33:19,350 --> 00:33:24,830 The backpack, he says, represents his interest in prepping, a .k .a. preparing 449 00:33:24,830 --> 00:33:26,390 for the end times. 450 00:33:26,990 --> 00:33:31,410 And he says he picked up the rifle because he thought it was cool and 451 00:33:31,410 --> 00:33:33,910 he'd take it to Africa to hunt with it. 452 00:33:35,080 --> 00:33:39,760 He later says the wigs and mustache were for a masculine Wonder Woman costume 453 00:33:39,760 --> 00:33:41,680 for a masquerade ball. 454 00:33:44,820 --> 00:33:48,460 Law enforcement officers and prosecutors don't buy it. 455 00:33:48,720 --> 00:33:53,800 They arrest Cohen that day on charges related to his insurance fraud, and the 456 00:33:53,800 --> 00:33:57,200 judge orders the detention of the former insurance executive. 457 00:34:00,860 --> 00:34:02,580 Next on American Greed. 458 00:34:03,260 --> 00:34:07,140 Prosecutors present disturbing courtroom evidence of what they call Cohen's 459 00:34:07,140 --> 00:34:11,460 dangerous attempts to intimidate, harm, and kill others. 460 00:34:11,800 --> 00:34:14,320 He admitted he went to Delaware. 461 00:34:14,860 --> 00:34:20,679 That's well past taking notes in a notebook for some screenplay or novel 462 00:34:20,679 --> 00:34:21,679 thinking of writing. 463 00:34:34,409 --> 00:34:39,190 After agents make a number of discoveries at Jeffrey Cohen's home, he 464 00:34:39,190 --> 00:34:42,370 assure them that none of this is what it looks like. 465 00:34:42,810 --> 00:34:47,030 But investigators piece together their own timeline of Cohen's recent 466 00:34:47,030 --> 00:34:52,150 activities, a timeline which, according to prosecutor Harry Gruber, indicates 467 00:34:52,150 --> 00:34:56,550 that Cohen was on the cusp of doing something truly heinous. 468 00:34:57,030 --> 00:34:59,730 The investigation is what the investigation is. 469 00:35:00,360 --> 00:35:05,480 I can't assume to know what exactly was in Mr. Cohen's mind, but the particular 470 00:35:05,480 --> 00:35:11,420 fact that we put together appeared that they all related to one another. 471 00:35:13,240 --> 00:35:18,160 According to the timeline and other evidence presented in court, on the 472 00:35:18,160 --> 00:35:22,760 of June 4th, the former insurance executive inquires about the purchase of 473 00:35:22,760 --> 00:35:28,100 rifle later found in his garage, saying he's looking for something for this 474 00:35:28,100 --> 00:35:29,100 summer. 475 00:35:29,960 --> 00:35:34,660 Two days later, he purchases the domain whyidedit .com. 476 00:35:35,580 --> 00:35:41,360 Cohen admits in court that on June 9th and 10th, he emails himself the firebomb 477 00:35:41,360 --> 00:35:47,020 instructions later found inside his Lexus SUV, and evidence shows that 50 478 00:35:47,020 --> 00:35:49,660 of ammonium nitrate are shipped to his house. 479 00:35:50,280 --> 00:35:54,920 Ammonium nitrate is typically used for fertilizer, but it was also one of the 480 00:35:54,920 --> 00:35:57,420 main ingredients in the Oklahoma City bombing. 481 00:36:00,170 --> 00:36:07,070 On June 12th, Cohen's birthday, he picks up his new $25 ,000 weapon, which in an 482 00:36:07,070 --> 00:36:11,890 email he says he will use for target shooting and collecting, not hunting in 483 00:36:11,890 --> 00:36:15,570 Africa, calling it such a piece of awesomeness. 484 00:36:16,530 --> 00:36:21,330 A couple of days after purchasing the rifle, Mr. Cohen goes to a shooting 485 00:36:21,550 --> 00:36:26,030 We actually were able to extract or download the memory from that scope. 486 00:36:26,990 --> 00:36:29,850 which showed what Mr. Cohen was doing with the rifle. 487 00:36:30,210 --> 00:36:35,990 Shots of him at the shooting range, shooting human silhouettes from up to 488 00:36:35,990 --> 00:36:36,990 yards away. 489 00:36:40,030 --> 00:36:46,910 Over the next few days, Cohen purchases fuses, incendiary ammo, and a $3 ,500 490 00:36:46,910 --> 00:36:48,550 night vision monocular. 491 00:36:49,290 --> 00:36:53,790 He updates his will and cashes out a quarter -million -dollar life insurance 492 00:36:53,790 --> 00:36:54,790 policy. 493 00:36:55,290 --> 00:37:00,750 Then, on June 19th, evidence presented in court shows that he begins a series 494 00:37:00,750 --> 00:37:04,990 Internet searches related to bombs and to people with whom he's butted heads in 495 00:37:04,990 --> 00:37:05,990 the past. 496 00:37:07,150 --> 00:37:12,490 Investigators testify that the next day, June 20th, Cohen prints out maps to the 497 00:37:12,490 --> 00:37:17,350 homes of Judge James Travis Laster and Delaware's former insurance 498 00:37:17,570 --> 00:37:18,570 Matthew Den. 499 00:37:19,290 --> 00:37:23,510 Cohen later admits that the same day, he takes a trip north. 500 00:37:24,080 --> 00:37:27,600 recording his thoughts on a new audio recorder as he goes. 501 00:37:28,120 --> 00:37:34,240 It's pretty surreal considering I'm driving to Delaware right now to scout 502 00:37:34,240 --> 00:37:38,260 how I can attack Dan and Laster. 503 00:37:39,260 --> 00:37:43,700 Hearing him on the road driving to Delaware, you can picture him in this 504 00:37:43,900 --> 00:37:48,020 He talks about reasons for killing, about being calm. 505 00:37:48,300 --> 00:37:49,300 I'm not crazy. 506 00:37:49,440 --> 00:37:51,600 I'm perfectly calm. 507 00:37:52,250 --> 00:37:56,770 I methodically planned this little recon scenario out. 508 00:37:57,070 --> 00:38:01,210 That, coupled with the evidence we had seen about the target list, the 509 00:38:01,210 --> 00:38:03,030 directions to these homes. 510 00:38:03,330 --> 00:38:05,590 I don't think anybody would ever understand. 511 00:38:06,010 --> 00:38:11,870 It was very eerie to hear that. How someone can do something that others 512 00:38:11,870 --> 00:38:18,050 is so horrific, but it seemed completely normal to the person committing the 513 00:38:18,050 --> 00:38:19,050 act, I guess. 514 00:38:22,440 --> 00:38:27,500 Cohen will later claim these audio recordings were kind of like a creative 515 00:38:27,500 --> 00:38:28,500 writing assignment. 516 00:38:29,160 --> 00:38:34,260 He claims he went to Dan's house not to attack him, but to research a political 517 00:38:34,260 --> 00:38:39,220 attack ad about him in a race against Cohen's lawyer to become Delaware's 518 00:38:39,220 --> 00:38:40,220 attorney general. 519 00:38:40,660 --> 00:38:46,220 He says he visited Laster's home to obtain information he needs to serve him 520 00:38:46,220 --> 00:38:47,220 with a lawsuit. 521 00:38:47,660 --> 00:38:52,470 And Cohen will also argue at sentencing, that the explosive materials were for a 522 00:38:52,470 --> 00:38:56,690 hydro generator and a flame -spitting guitar he was building. 523 00:38:58,690 --> 00:39:03,110 But the feds argue in court that the evidence points elsewhere. 524 00:39:03,650 --> 00:39:07,930 So this just all put together painted a pretty troubling picture of what Mr. 525 00:39:08,050 --> 00:39:10,130 Cohen may have intended to do in the very near future. 526 00:39:11,530 --> 00:39:15,290 Cohen is arrested just five days after his trip to Delaware. 527 00:39:18,890 --> 00:39:24,230 When he goes to trial at the federal courthouse in Baltimore in June 2015, 528 00:39:24,230 --> 00:39:25,290 represents himself. 529 00:39:26,950 --> 00:39:31,330 Though he admits in his opening argument that he misrepresented some of the 530 00:39:31,330 --> 00:39:36,310 financials, he says he did so because he thought it would help make him look 531 00:39:36,310 --> 00:39:38,910 bigger if he sold his company or went public. 532 00:39:39,990 --> 00:39:44,230 Four days into the trial, Cohen pleads guilty to charges of wire fraud, 533 00:39:44,570 --> 00:39:49,900 aggravated identity theft, making a false statement to a regulator and 534 00:39:49,900 --> 00:39:51,220 obstruction of justice. 535 00:39:51,660 --> 00:39:58,340 Then, in December 2015, a judge sentences him to 37 years in prison 536 00:39:58,340 --> 00:40:02,920 and orders him to pay $137 million in restitution. 537 00:40:03,200 --> 00:40:08,280 This loss amount, determined by the judge, equals the premiums that 538 00:40:08,280 --> 00:40:13,980 say indemnity collected through fraud minus the claims they say Cohen's 539 00:40:13,980 --> 00:40:14,980 paid out. 540 00:40:15,340 --> 00:40:20,780 Cohen, who says his company actually paid over $40 million in claims, has 541 00:40:20,780 --> 00:40:26,260 protested the $137 million loss amount, which is the main factor in determining 542 00:40:26,260 --> 00:40:27,920 his nearly four -decade sentence. 543 00:40:28,500 --> 00:40:32,480 Though he does not plead guilty to any charges related to what prosecutors call 544 00:40:32,480 --> 00:40:37,820 his attempts to kill and use physical force against others, the judge says 545 00:40:37,820 --> 00:40:43,440 probable that Cohen meant to harm Den, Laster, and two lawyers working for 546 00:40:43,440 --> 00:40:44,440 Delaware. 547 00:40:44,560 --> 00:40:50,600 As of 2017, Cohen called the assertion he intended harm completely ridiculous, 548 00:40:51,060 --> 00:40:54,920 borderline fraudulent, and at a minimum, frivolous. 549 00:40:56,560 --> 00:41:01,720 But to people like attorney Andrew Cohen, who testifies the FBI told him 550 00:41:01,720 --> 00:41:05,580 was keeping tabs on him, the fear is no less real. 551 00:41:06,100 --> 00:41:07,380 It was very disturbing. 552 00:41:07,600 --> 00:41:09,960 At the time, my children were young. 553 00:41:10,460 --> 00:41:16,360 And I have a wife, I have a family, and I realized then that my 554 00:41:16,360 --> 00:41:21,080 personal safety and the safety of my family may very well have been in 555 00:41:21,300 --> 00:41:25,900 As we litigated this case and experienced some of the tactics that 556 00:41:25,900 --> 00:41:29,440 to bear, we speculated about where this might go someday. 557 00:41:29,880 --> 00:41:35,180 But we never in our wildest dreams thought that it could end up where 558 00:41:35,180 --> 00:41:36,180 it did. 559 00:41:37,420 --> 00:41:41,780 Cohen continues to litigate matters in Delaware related to the seizure and 560 00:41:41,780 --> 00:41:46,580 liquidation of his company, to file lawsuits against various parties, and to 561 00:41:46,580 --> 00:41:51,400 fight his case, including the recent filing of a motion to vacate his 562 00:41:52,600 --> 00:41:57,480 Despite repeated requests, Cohen declined to answer questions for this 563 00:41:57,480 --> 00:41:58,500 of American Greed. 564 00:42:03,520 --> 00:42:08,940 Even after pleading guilty, Cohen maintained that no one lost any money 565 00:42:08,940 --> 00:42:12,680 of his deceit and that no policyholder was harmed. 566 00:42:13,000 --> 00:42:15,540 Not everyone agrees with this sentiment. 567 00:42:16,060 --> 00:42:20,580 There are a large number of policyholders. They were paying for an 568 00:42:20,580 --> 00:42:21,840 insurance company. 569 00:42:22,160 --> 00:42:24,780 That rating was based on fraud. 570 00:42:25,160 --> 00:42:30,360 They were paying for a company that had the money to pay out claims if they 571 00:42:30,360 --> 00:42:33,140 arose. That money in surplus was not there. 572 00:42:34,080 --> 00:42:38,200 Ultimately, when the company was shut down because of his fraud and because of 573 00:42:38,200 --> 00:42:42,080 his lack of financial wherewithal, these policyholders were left without an 574 00:42:42,080 --> 00:42:43,080 insurance policy.