Former accountant's role in massive insurance fraud results in probation, home confinement
A Bradenton man was sentenced in federal court this week to five years of probation with multiple conditions including home confinement for his part in bilking elderly investors for millions of dollars in a Florida insurance scheme.
Kenneth Rossman, 65, was sentenced before U.S. District Judge Charlene Edwards Honeywell to a probationary period of five years, with 12 months of home confinement, according to a spokesperson with the U.S. District Attorney's Office of the Middle District of Florida. Rossman was also ordered to pay more than $5 million in restitution — jointly and severally — with Phillip Roy Wasserman, a former lawyer and licensed insurance agent.
Rossman pleaded guilty in July 2021 to conspiracy to commit wire fraud and mail fraud, as well as aiding and abetting the preparation of a false and fraudulent income tax return, according to earlier reporting by the Sarasota Herald-Tribune.
As part of his plea agreement, Rossman testified against co-defendant Wasserman, 66, during a six-week trial. Wasserman was indicted in June 2020 by a federal grand jury for running a “fraudulent insurance venture” that included Ponzi-style payments from investors which funded his lavish lifestyle.
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Wasserman was found guilty in May 2023 on multiple counts of wire fraud and mail fraud, as well as conspiracy to commit wire and mail fraud.
Rossman, a Florida certified public accountant and licensed insurance agent, worked with Wasserman to defraud the elderly investors by providing fraudulent misrepresentations and concealing material information about Wasserman’s insurance venture, FastLife, according to a news release from the United States Attorney’s Office of the Middle District of Florida.
The victims were convinced to liquidate traditional investments, like annuities, and borrow funds against their life insurance policies to invest in FastLife. The money taken from the victims was used to enrich Wasserman and Rossman’s lives, according to the news release, with Wasserman paying Rossman a percentage of the victim investors' money as compensation.
Rossman asks for a reduced sentence to care for sons with special needs
Rossman’s defense filed a motion to reduce his sentence on July 6. In the filing, the defense detailed Rossman’s struggle with bipolar disorder and how he is the sole financial provider and emotional caregiver to two special needs sons who are still grieving the loss of their mother from cancer.
The court filing explained that Rossman grew up in a home “plagued by limited financial resources, parental neglect, domestic violence, and parental infidelity.”
Rossman’s defense further stated that beyond working for Wasserman as FastLife’s chief financial officer, the rest of his employment over the years was above the law. In addition, the defense said Rossman suffered from an untreated bipolar disorder while working at FastLife which caused him to partake in “high-risk behavior” like gambling. He has since received mental health treatment through pretrial services.
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In April 2021, Rossman’s wife passed away from cancer which has been emotionally difficult for his two sons who also have different disorders and illnesses that require special care, according to the court document.
U.S. Attorney Roger Handberg also submitted a motion to reduce Rossman’s sentence from the advisory sentencing range of 57 to 71 months, which equates to approximately five to six years in prison, to 30 to 37 months.
The prosecutor said Rossman “provided truthful and timely information to the United States, testified at the trial of his co-defendant, Phillip Roy Wasserman, and was essential to the government securing verdicts of guilty against defendant Wasserman.”
Gabriela Szymanowska covers the legal system for the Herald-Tribune in partnership with Report for America. You can support her work with a tax-deductible donation to Report for America. Contact Gabriela Szymanowska at gszymanowska@gannett.com, or on Twitter.
This article originally appeared on Sarasota Herald-Tribune: Bradenton man sentenced to probation, home confinement in fraud scheme
