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Spring Lake Couple Indicted In $1.8 Million Scam

Couple indicted for role in scam bilking money from insurance companies, Attorney General says

A Spring Lake couple was indicted by a grand jury Monday on 27 counts of fraud and related crimes for their alleged connection to a scam to bilk $1.8 million from insurance companies, according to the Office of the Attorney General.

Brian P. Mohen, 46, and Lisa A. Stanko-Mohen, 47, who currently live in Spring Lake but who lived in Far Hills Borough when the reputed crimes occurred, were each charged Monday with second-degree conspiracy; insurance fraud; six counts of theft by failure to make required disposition of property received; six counts of misapplication of entrusted property; and one count of use, control or operation of a corporation for furtherance or promotion of a criminal object, according to a release from the Attorney General’s Office. 

Each also was charged with three counts of misapplication of entrusted property, three counts of theft by failure to make required disposition of property receive, two counts of failure to file income tax return and two counts of failure to pay taxes, all in the third degree, the release said.

Mohen was additionally charged with second-degree issuing a bad check and Stanko-Mohen was charged with fourth-degree forgery, the release said.

"This indictment sends a strong message to insurance brokers that the theft of insurance premiums by brokers will not be tolerated in New Jersey," Attorney General Jeffrey S. Chiesa said in the release.

The pair were the managing directors of Arden Financial Services, Inc., in Far Hills.  The insurance policies that Arden sold protected officers of companies from being sued for negligence in the performance of their duties, workplace discrimination and malpractice, the release says.

The state grand jury indictment alleges that from Feb. 28, 2007, to June 7, 2010, the pair — through Arden — stole $1,798,880 by failing to give premiums they received to eight insurance companies, according to the release.

The pair stole $1,028,112 from Zurich American Insurance Company, $300,900 from Indian Harbor Insurance Company, $128,694 from Great American Insurance Company, $123,250 from Catlin Specialty Insurance Company, $89,250 from XL Specialty, $71,823 from Navigators Insurance Company, $52,650 from The Camden Fire Insurance Association, and $4,200 Greenwich Insurance Company, according to the release.

Once the defendants’ alleged fraudulent actions were discovered, the insurance companies made good on the policies, so that the policyholders did not lose coverage, according to the release.

An investigation revealed that instead of holding the money in a separate trust account as required by law, the pair used the money it received in insurance premiums for other office use, failed to pass the money on to insurance companies to which it was due and used the money for their own purposes, according to the release.

The indictment also says that from June 5, 2008, to July 17, 2008, Mohen issued a $741,445 check to Zurich Insurance to cover a policyholder’s premium, knowing that the bank would not honor the check.  The check was bounced due to insufficient funds, the release says.

The indictment also alleges that on March 24, 2009, Stanko-Mohen forged a document purportedly from Navigators Insurance Company to a policyholder, according to the release.

The indictment also says the pair did not file income tax returns for 2008 and 2009, failing to pay $71,869 in taxes, according to the release.

Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of up to $150,000 while third-degree crimes carry a maximum sentence of up to five years in state prison and a criminal fine of up to $15,000.  Fourth-degree crimes carry a maximum sentence if 18 months in state prison and a criminal fine of up to $10,000, the release says.

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Cathi December 11, 2012 at 05:59 PM
As a trusted insurance representative for many years, this makes me ill. Your promote your industry based on peoples trust in you. How can people do this??? GREED that's how. Hope they get a nice 4x5 grey cell to live in for a few years.

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