Steven Blumhagen

A former business associate of Bermuda insurance executive Robin Spencer-Arscott has been sentenced to 57 months in prison in the United States for defrauding victims out of $10 million in an insurance scam. At his sentencing hearing on December 15, 2006 at the U. S. District Court for the Western District of New York, Steven D. Blumhagen received prison terms of 57 months for conspiracy to defraud the United States and 48 months for fraud, with both sentences to run concurrently. He had pleaded guilty on April 18, 2006.

Was Buffalo-based businessman Steven Blumhagen really the source of $30 million that was to have been the start-up capital of Resource Underwriters, as the company's Bermudian front-man, Robin Spencer-Arscott, would have us believe? Highly unlikely, we can report. Unless, that is, 46-year-old Blumhagen has recently won the New York state lottery and checked the ‘no publicity' box.