Fake Policies…Fake Country?

What could go wrong? 

Federal authorities determined that now convicted con artist, Ronald Allen, was connected to the “online nation”, Dominion of Melchizedek, which claims “ecclesiastical sovereignty,” much like the Vatican City in Rome.  Created in 1986, the DoM is based on the Biblical legend of Melchizedek, known as a priest-king, and claims Jerusalem as its homeland. They seem to have published their own Bible, claimed sovereignty over areas of the world that already belong to other countries,  and let’s not fail to mention, saw its founders later convicted and imprisoned for a host of financial frauds.

Perhaps Ronald felt that selling insurance policies for a company that didn’t exist was perfectly legal in the good ol’ Dominion of Melchizedek; however, the federal government certainly did not agree and Allen landed in federal court on fraud charges.  Numerous investors have been victimized by false investment and employment scams perpertated through the Dominion of Melchizedek dating back over two decades, and a federal jury saw right through Allen’s scheme. 

After a week long trial, a New Jersey federal jury convicted 62-year-old Allen of conspiracy to commit mail and wire fraud.  According the Cliffview Pilot, prosecutors claimed that Allen and co-conspirator, Gilbert Morgan, of Houston, sold liability policies in the name of Universal Pacific Insurance Company Ltd., a corporation listed on the Belize International Stock Exchange, after supposedly being created in Fiji. 

“From March through December 2004, Morgan collected $692,000 in premiums for worthless policies he sold, federal authorities said. He gave Allen $366,000, which he then spent on himself; $123,700 was directly withdrawn in cash from ATMs, they said.”

Several consumers of Pacific policies testified against Allen claiming they had to shut down their businesses just to settle their claims while others were forced to pay out of pocket.  Many of the victims didn’t realize Allen’s company was a sham until a claim arose and Universal Pacific never paid.

Eventually, Allen had to learn the harsh reality that loyalty comes at a price as almost his entire operation turned against him in hopes of leniency. Several co-conspirators, including Morgan, pleaded guilty and helped the government in building a case against Allen.

Those who were also involved in selling the phony policies include John Petrillo, 56, of Hammonton, NJ and Thomas Kulig, 35, of Little Egg Harbor, NJ.  Both pled guilty and were sentenced to serve time in prison and ordered to pay restitution.  Another co-conspirator is listed as 56-year-old Thomas Grubb of Voorhees, NJ.  Grubb skipped a court date in November 2008 and still remains at large.