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Georgia insurance commissioner will keep $120K salary despite suspension, federal indictment

Insurance commissioner Jim Beck is accused of defrauding insurance companies for at least 5 years, ending before he was elected this past fall. Although he suspended himself, he'll get to keep his salary.

ATLANTA — Jim Beck pleaded not guilty in federal court Wednesday to 38 charges, including fraud and money laundering. The crimes allegedly happened between 2013 and 2018, but ended before he took office in the fall as the insurance and fire safety commissioner.

11Alive News spoke with Beck's attorney who confirmed Gov. Kemp issued an executive order suspending him, per Beck's request. Kemp previously called for Beck to resign. 

RELATED: Georgia Insurance Commissioner steps away amid fraud charges

Beck maintains his innocence, but the suspension means he will get to keep his $120,000-a-year salary. The governor will likely appoint an interim commissioner, according to Beck's attorney. An attorney not affiliated with the case tells 11Alive if Kemp does appoint an interim, it's possible that person could also have a $120,000 salary.

The U.S. Attorney BJay Pak laid out its case against Beck Wednesday in federal court. He revealed the state has more than 100,000 pages of evidence related to the case. Pak also said they have recordings of Beck lying about the scheme to a family member.

"In beginning of 2013, Mr. Beck convinced four of his associates to create four separate businesses with the alleged purpose of supplying Georgia Underwriting Association (GUA) with services,” said Pak, when announcing the indictment Tuesday.

PREVIOUS: Ga. insurance commissioner charged in $2M scheme

Prosecutors painted a complicated scheme to cover up illegal payments Beck allegedly received.

The alleged crimes as detailed in indictment:

  • Beck got payments through several companies
  • Beck created shell companies to make fake invoices and redirect money given to him through other companies

"The grand jury has alleged in the indictment the creation of the companies were all suggested by Mr. Beck, the way the invoice was done was all suggested by Mr. Beck, and of course, there's allegations that he facilitated payments," Pak said.

Beck allegedly used the money to pay his personal taxes, buy a rental property, pay his credit card bills and fund his election campaign.Shortly after the court hearing, Governor Kemp issued a letter asking Beck to resign from his office.

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