CENTENNIAL — The Rev. Acen Phillips will not have to spend any time in jail for insurance fraud of more than a half-million dollars.
On Thursday in Arapahoe County District Court, a judge approved a plea agreement that will place Phillips on probation for eight years and ordered him to pay $500,000 in restitution to AIG Life Insurance Co.
During the half-hour hearing, Phillips spoke softly and told District Judge Charles Pratt that he would do whatever it takes to pay back the insurance money and regain his reputation.
“I apologize to the court, my community and my church,” the 73-year-old Phillips said. “I want an opportunity to redeem myself in the community.”
Pratt gave him that chance but said he was baffled how a man of Phillips’ background and character had gotten involved in such a situation.
Pratt dropped 12 felony charges, and Phillips pleaded guilty to one count of felony theft by receiving. Phillips also must perform 100 hours of community service. A civil lawsuit filed against him in federal court also was dismissed.
AIG will get the restitution Phillips agreed to pay because it paid those who were duped by the minister the money from the bogus life-insurance policies.
The Colorado attorney general’s office, which prosecuted the case, said Phillips forged the signatures of at least five people, some of whom had died, and then backdated the documents to make his church and charitable organizations the beneficiary of their life-insurance policies.
In all, the thefts totaled $575,000.
The victims were members of Mount Gilead Baptist Church and New Birth Church. Phillips was pastor at both.
Joy and Jerry Brumley of Highlands Ranch purchased a life-insurance policy from Phillips for their son, Ryuichi, who died a few years ago at age 24.
“We went through some tough times. (Phillips) was a friend of the family,” Joy Brumley said. “We’re still grieving over our son, so this is pretty tough.”
One theft and forgery charge involved Shelley Lowe. She was the girlfriend of Aaron Thompson, who has been indicted in the death of his daughter Aarone.
Lowe died in 2006 of a heart attack. Phillips sold Lowe a bogus $100,000 life-insurance policy.
Phillips could have faced up to 81 years in prison and $5 million in fines if convicted of the crimes.
It was unclear how he would pay back the money to AIG. His attorney, Gary Lozow, said Phillips does not have that amount of money.
“Everyone involved knows Acen doesn’t have the wherewithal to pay that, but he’ll do the best he can,” Lozow said. “What the law says is that you have to make reasonable efforts to make payments.”
“The important message here is that people who are determined to defraud insurance companies probably need to think twice before they do that,” said AIG spokesman Chris Winans.
Carlos Illescas: 303-954-1175 or cillescas@denverpost.com
