I Investigate the Other Brian Glidewells Part I: The Criminal
The Hughes Opinion in the Claro Case
On March 25, 2004, John Claro and seven others were charged with conspiracy, mail fraud, and money laundering in an indictment accompanied by a press release. The government accused Claro, Jack Ferguson, Milton Wilkinson, Gary Hoskie, James Glidewell, Brian Glidewell, Michael Reeve, and Euan McNicoll of conspiring to mislead businesses about services they offered in connection with companies funding their own health insurance.
It said that they “induced” plan users to pay low premiums by falsely claiming that they were not subject to state regulation. It accused them of diverting some premium funds into bank accounts of fictional offshore entities instead of paying the legitimate insurers. It said that they knew that their other re-insurers were undercapitalized and would not pay the claims filed. Claro was arrested by FBI agents, and he hired John Neville to defend him. He pleaded not guilty and was released on bond. On Claro’s motion, the court dismissed the indictment without prejudice on July 20, 2005. The government failed to appeal the dismissal or reindict him, and Claro moved for defense costs under the Hyde Amendment.
