Man Sentenced For Defrauding Thousands of US Navy Sailors in Insurance Fraud Scheme

A man who defrauded thousands of U.S. Navy sailors in San Diego County through a tax and insurance fraud scheme was sentenced Monday to house arrest and was ordered to pay $500,000 in restitution.

Paul Flanagan, 56, used a business called Go Navy Tax Services -- which operated out of a trailer just outside Naval Base San Diego -- to sell expensive and unnecessary insurance products to service members.

"The trailer was adorned with military flags intended to deceive service members into thinking the business was affiliated with the U.S. military," the California Attorney General's office said.