Insurance Fraud Former Kansas City Water Department Employee Pleads Guilty

A former employee at the Kansas City water department has pleaded guilty to taking part in a scam that defrauded an insurance member benefit program out of about $300,000.

The U.S. Attorney for the Western District of Missouri said in a release Thursday that 31-year-old Michael King of Kansas City pleaded guilty in federal court to one count of wire fraud.

Prosecutors allege King and other city employees defrauded Blue Cross and Blue Shield of Kansas City out of more than $300,000 through a benefit program that allowed members to accumulate points for participating in healthy activities. They received $1 for every 1,000 points earned toward a gift card or $250 debit card.

King was accused of making fake submissions for 51 employees, resulting in 79 gift cards worth $12,745.

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