Big Profits From ‘Fake Bonds’

Denise Gillin Uncategorized

A warrant executed to search the home of a man who claimed to operate an insurance agency out of Providence alleges he made more than $1 million in one year selling “fake bonds” to companies around the country.

Coventry Developer John Gauvin told Target 12 last year that he warned insurance officials in a number of states several times about Leo Rush after an issue with a construction bond in 2012.

Construction bonds are requirements for municipal and state-funded projects, to cover the cost of mistakes or if a project is not completed.

If a project is completed without any issues, no one would know a bond was bogus unless the government checked on the document.

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