NEW YORK, N.Y., August 3 – A Poughkeepsie insurance agent is facing four counts of felony mail fraud for an alleged phony insurance scheme in which he falsified information on applications for health insurance, and overcharged customers, according to the New York State Insurance Department (NYSID).

The department said that the agent, Jeffrey C. Seifts, allegedly victimized 240 people, including a Dutchess County woman subsequently forced to file for bankruptcy.

An investigation into Seifts conduct began in 2003 when the department was contacted by a Dutchess County woman who incurred $50,000 in medical expenses resulting from complications during a pregnancy. She told the departments Consumer Services Bureau that she was unable to have the expenses paid through the insurance she purchased from Seifts, and she later filed for bankruptcy.

At the same time, the department said, a health maintenance organization, MVP Health Care Inc. in Schenectady, contacted the department saying it suspected irregularities in numerous applications it had received from Seifts.

Investigators said that applications from different individuals contained the same handwriting, and that suspicious alterations appeared to have been made on some applications. In addition, the department said that a large number of applicants were identified as management employees for the same organization, Professional Employees Management Corp. (PEMC), a company later determined to be fictitious.

According to Insurance Department Frauds Bureau investigator Gordon Saggese, an investigation found that Seifts solicited business from retirees, small business owners, and others on the basis that they could obtain less costly insurance through the small group plan he purportedly operated. However, a review of Seifts records revealed that his customers were actually paying more than they would have paid through other insurance plans, and that Seifts had overcharged customers a total of $76,747, Saggese said.

While some of the people who purchased insurance received coverage for their medical expenses, the investigation revealed that Seifts allegedly failed to send MVP Health Care $60,645 in premium payments, and that he collected $13,232 in unauthorized fees.

Seifts is scheduled to go on trial in U.S. District Court in Albany on August 30. If convicted, he could be sentenced to up to 20 years in jail.