Cordova man sentenced for involvement with $5.9M insurance fraud scheme
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MEMPHIS, Tenn. (WMC) – A Cordova man was sentenced for his connection in a $5.9 million fraud scheme.
On Oct. 17, Christopher C. Brown, 47, was sentenced to 27 months in federal prison and ordered to pay $5,214,302.00 in restitution following his conviction for a multi-year scheme to defraud four insurance companies.
While running a music recording studio on Monroe Avenue in Memphis, Brown filed claims with Main Street Assurance Company for alleged losses of more than $340,000 due to water damage and a burglary at the business. Main Street settled Brown’s claims.
Brown then secured insurance coverage for the same company location through Markel Corporation. Brown then filed a claim with Markel for $2,840,000 for alleged fire damage to the building, which was honored.
He then created a limited liability company called Tattooed Millionaire Entertainment (TME). This helped Brown to apply for insurance coverage without disclosing any past insurance claims.
Brown bought a second Memphis property on Rayner Street through TIME, which had formerly housed the House of Blues, a well-known recording studio. Brown obtained insurance for the Rayner property and music recording company from Hanover American Insurance Company.
He then later filed a claim with Hanover for alleged damage from an arson fire that destroyed the Rayner property, and Hanover paid him $2,200,000 for the claim.
During this time, Brown got Progressive Insurance for his 1985 diesel bus.
He then filed a claim with Progressive, stating that the bus had been stolen. Progressive settled Brown’s suit for $109,580.
Brown’s claims with the four victim insurance companies contained fraudulent statements and representations. This includes submitting fraudulent or altered documents to the companies.
In September 2023, Brown pleaded guilty to mail fraud.
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