<p>Two men were indicted Tuesday on charges they defrauded three insurance companies out of $1.3 million.</p><p>Richard Taylor, 57, of Prospect, and Michael Lenig, 48, of Alpharetta, Ga., could face up to 35 years in prison and $1.25 million in fines if convicted.</p><p>The federal indictment charges that between October 1998 and October 1999, Taylor and Lenig submitted false information to Neace, Lukens and Associates; Monroe Guaranty Insurance Co. and Intercargo Insurance Co. in order to obtain surety bonds on behalf of CM Construction and Development Services, LLC. The defendants transmitted copies of financial statements of CM Construction which "intentionally misrepresented the true financial condition of the company," the indictment said.</p><p>CM Construction defaulted on financial obligations owed on bonded construction projects, the indictment said, and the three insurers "were required to satisfy those financial obligations," the indictment said.</p><p>Taylor and Lenig also obtained a $400,000 increase in a credit line issued by Capital Bank of Kentucky on behalf of CM Construction. The men also submitted financial statements to the bank that misrepresented the company's financial status.</p><p>Taylor and Lenig are scheduled to be arraigned on Sept. 21 in Louisville.</p>
