Plumber’s $2.2 Million Insurance Scheme Unravels After a Stupid Mistake

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The fatal flaw in his multi-million-dollar scheme: paying the insurance premiums for 104 phony policyholders with his own company’s credit card.

A Newburyport man will serve two years in federal prison for orchestrating an audacious, multi-year scheme to defraud a home repair insurance provider of nearly $2.2 million. The scheme involved creating fake policyholders, reporting non-existent home emergencies, and billing for repair work that was never performed.

On July 24, 2025, U.S. District Court Judge Indira Talwani sentenced Christian Decristofaro, 40, to two years in prison followed by three years of supervised release. In addition, Decristofaro was ordered to pay $2,196,323 in restitution and to forfeit the same amount to the government. In March 2025, he pleaded guilty to a one-count Information charging him with wire fraud.

For insurance professionals, this case serves as a compelling case study in vendor fraud, highlighting the importance of robust internal controls and data analysis to detect and prevent significant losses.

Decristofaro hatches fraud scheme after termination by insurer for questionable repair invoicing

The government’s sentencing memorandum reveals that the scheme began after Decristofaro’s legitimate plumbing company, Prometheus Plumbing LLC, was terminated from the victim insurer’s contractor network due to concerns about its invoicing practices and whether it was actually performing the assigned work.

Rather than ceasing his activities, Decristofaro pivoted. In September 2020, he had his brother incorporate a new entity, NE Premier Home Services LLC (“NE Premier”). According to prosecutors, the sole purpose of this new company was to conceal Decristofaro’s involvement so he could re-enter the insurer’s network and continue his fraudulent activities. Unaware of Decristofaro’s control over the new company, the insurer accepted NE Premier into its contractor network.

The Mechanics of an Audacious Fraud

An FBI Special Agent’s affidavit filed in support of the issuance of an arrest warrant for Decristofaro lays out the brazen mechanics of the fraud in detail. The scheme was straightforward and followed a repeatable four-step pattern:

Create Fake Insureds: Decristofaro used false or stolen identities to enroll fictitious homeowners in the victim’s home repair insurance plans.

Pay with His Own Card: In a stunningly brazen, and ultimately dumb move, Decristofaro used a single credit card—ending in -0410 and linked to his own Prometheus Plumbing business bank account—to pay the modest monthly premiums for 104 of these fake policyholders. This single card was used for approximately 767 fraudulent jobs that resulted in payments of over $1.3 million to NE Premier.

Report Fake Emergencies and Request His Own Company: Decristofaro would impersonate the fake policyholders in calls to the insurer, report a non-existent emergency like a gas line leak, and then specifically request that NE Premier be assigned to the job. In one recorded call, Decristofaro, posing as “Policyholder 1,” stated he wanted NE Premier assigned because he “prefers those guys”.

Bill for Phantom Work: After the insurer assigned the non-existent job to NE Premier, Decristofaro would cause NE Premier to submit invoices for work that was never performed.

The funds, totaling approximately $2,196,323 between October 2020 and June 2023, were paid by the insurer to NE Premier’s bank account. The money was then systematically transferred to Decristofaro’s Prometheus Plumbing account and spent on personal items, including international travel and luxury goods. The scheme was ultimately uncovered during an internal audit by the victim insurer, which then referred the matter to law enforcement.

The Legal Framework: Wire Fraud and a Plea Agreement

Decristofaro was charged with violating the federal wire fraud statute, 18 U.S.C. § 1343. This statute makes it a crime to use interstate wire communications—such as phone calls or electronic fund transfers—to execute a “scheme or artifice to defraud”. The use of his credit card, which routed payments through an out-of-state server, satisfied the interstate element of the offense.

He chose to waive his right to have his case presented to a grand jury for indictment and instead pleaded guilty to an “Information,” a formal charging document filed by the prosecutor. This is a common procedure in federal court when a defendant has agreed to plead guilty.

The plea agreement laid out the parties’ calculation of the advisory Federal Sentencing Guidelines, which provide a framework for judges in determining a sentence. Both parties agreed to a total “offense level” of 20, calculated as follows:

• A base offense level of 7.
• A 16-level increase because the loss amount was between $1.5 million and $3.5 million.
• A 2-level increase for the use of “sophisticated means,” such as creating a new corporate entity to conceal his involvement.
• A 3-level reduction for accepting responsibility for his crime.
• A 2-level reduction for having no prior criminal history points, an adjustment available to certain first-time offenders.

This offense level, combined with his lack of a criminal record, produced a recommended sentencing range of 33 to 41 months in prison.

The Government’s Push for a Stiff Sentence

In its sentencing memorandum, the government argued for a sentence of 33 months—the low end of the calculated range. Prosecutors emphasized that Decristofaro’s crime was not an isolated mistake but a “series of calculated steps” motivated by “greed, entitlement, and a mistaken belief that he was somehow above the law”. They argued that a significant prison sentence was necessary for both general and specific deterrence.

For general deterrence, the government stressed the need to show that insurance fraud is not a “no harm, no foul crime” and that perpetrators will “face serious consequences, and not only in the form of financial penalties”. For specific deterrence, prosecutors pointed to Decristofaro’s troubling pattern of conduct, noting that he only stopped because he was caught and had even attempted to get back into the insurer’s network through other companies after NE Premier was terminated. This, they argued, showed a lack of genuine remorse and a high risk that he would re-offend.

Ultimately, Judge Talwani imposed a sentence of 24 months, below the government’s recommendation but still a substantial term of incarceration, sending a clear message about the seriousness of this type of white-collar crime.

The Prosectution Team

United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement of Christofaro’s sentencing . Assistant U.S. Attorneys Meghan C. Cleary and Leslie A. Wright of the Criminal Division prosecuted the case.