Fraud Resulted in Collapse of Two Insurance Companies and Over $20 Million in Losses
July 21, 2025 – OAKLAND, CA – Former insurance executive Jasbir Thandi pleaded guilty in federal court on Friday, 
July 18, 2025, for his role in fraud schemes that led to the collapse of two insurance companies, Global Hawk Risk Retention Group (Global Hawk) and Houston General Insurance Exchange (HGIE).
Thandi, 69, of San Francisco, was indicted by a federal grand jury on Nov. 16, 2023. In pleading guilty, Thandi admitted to two counts of conspiracy to commit insurance fraud.
According to court documents and the plea agreement, Thandi founded Global Century Insurance Brokers, an insurance brokerage based in Livermore, Calif., which helped manage the insurance business of Global Hawk. Beginning no later than May 2018, Thandi and his co-conspirators conspired to create fraudulent financial records, including bank and brokerage records, that falsely overstated the amount of insurance capital and reserves held by Global Hawk, which were submitted to the Vermont Department of Financial Regulation, Global Hawk’s insurance regulator. In May 2020, after regulators discovered the fraud, Global Hawk was declared insolvent and liquidated.
Thandi misappropriated more than $1.5 million in Global Hawk funds for personal use, including the purchase of a house and a luxury vehicle. He also bought and sold stocks using Global Hawk funds that were required by law to be maintained as insurance reserves to cover future losses or insurance claims.
Thandi also admitted that in August 2016, he obtained a $6.4 million line of credit, later increased to $14 million, on behalf of Global Hawk, which the company’s board of directors had not authorized. Around March 2017, Thandi applied for a second line of credit in the name of Global Hawk in the amount of $14.75 million, again misrepresenting that the line of credit had been authorized by the board of directors.
In addition, Thandi admitted to engaging in a similar fraud conspiracy with HGIE, a Texas-domiciled insurance company. Thandi and his co-conspirators created fraudulent financial documents that were used to create false financial statements submitted to the Texas Department of Insurance on behalf of HGIE. These false documents included bank statements and brokerage statements that falsely represented that HGIE had millions of dollars in insurance reserves and capital assets. These false financial documents were used to deceive the Texas Department of Insurance into believing that HGIE had more assets and monies than it in fact had, and to conceal the fact that HGIE did not have the capital reserves required by Texas law.
“Thandi and his co-conspirators’ scheme was far-reaching and had devastating financial consequences, including the collapse of two insurance companies and millions in losses to hundreds of victims. Together with our law enforcement partners, we work tirelessly to ensure that individuals who commit insurance and other forms of fraud are held accountable and this case is an important example of our efforts,” said United States Attorney Craig H. Missakian.
“Today’s guilty plea reflects the FBI's commitment to holding accountable those who manipulate financial records and abuse positions of trust for personal gain. By misrepresenting assets and misappropriating funds, Thandi not only misled regulators but also defrauded his company’s customers,” said FBI Special Agent in Charge Sanjay Virmani. “The FBI and our partners will continue to investigate and bring to justice those who exploit consumers through corporate fraud.”
“Criminals who would use the U.S. mail to commit fraud should know that postal inspectors and our federal law enforcement partners remain committed to protecting the public from financial crime,” said U.S. Postal Inspection Service (USPIS), San Francisco Division Inspector in Charge Stephen M. Sherwood.
Thandi is the fourth and final defendant to plead guilty to charges related to these insurance fraud schemes. Co-defendants Sandeep Sahota, Jaspreet Padda, and Gunjan Aggarwal all previously entered guilty pleas to the same charges.
Thandi is currently released on bail. He is next scheduled to appear in district court on Aug. 29, 2025, for a status hearing on sentencing before U.S. District Judge Jon S. Tigar. Defendant faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count of conspiracy to commit insurance fraud. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The Department of Justice is notifying identified victims of these crimes through the Department of Justice Victim Notification System (VNS). If you believe you are a victim and have not received communication from the VNS at notify@usdoj.gov, please contact the Mega Victim Case Assistance Program (MCAP) toll free number 1-844-527-5299 (Monday through Friday from 8:30 a.m. to 5:30 p.m. Eastern), or send an email to USAEO.MCAP@usdoj.gov.
Assistant U.S. Attorneys David Ward and Evan Mateer are prosecuting the case with the assistance of Kevin Costello and Amala James. The prosecution is the result of an investigation by the FBI and USPIS.
Source: DOJ Release
