TRENTON
- Attorney General Zulima V. Farber and
Division of Criminal Justice Director Gregory
A. Paw announced that a Monmouth County
insurance agent was named today in a state
grand jury indictment charging him with
stealing more than $346,000 in insurance
sales commissions.
According
to Insurance Fraud Prosecutor Greta Gooden
Brown, Guy Cardinale, 46, of Fair Haven,
a licensed insurance agent, was charged
with one count of second-degree theft by
deception, four counts of third-degree theft
by deception and two counts of fourth-degree
forgery.
The state grand jury indictment alleges
that between July and December 2002, Cardinale,
who was employed as an agent for the Canada
Life Assurance Company, allegedly submitted
life insurance policy applications and supporting
records to create the impression that customers
had purchased various life insurance policies
when, in fact, they had not purchased insurance.
An investigation by the Division of Criminal
Justice - Office of Insurance Fraud Prosecutor
determined that Cardinale allegedly submitted
the fraudulent documents to the Canada Life
Assurance Company in order to collect more
than $346,025 in up-front commissions for
four fictitious sales of insurance.
The indictment was handed up today to Superior
Court Judge Linda R. Feinberg in Mercer
County. Second-degree crimes carry a maximum
punishment of 10 years in state prison and
a criminal fine of $150,000, while third-degree
crimes carry a maximum punishment of five
years in state prison and a criminal fine
of $15,000. Fourth-degree crimes carry a
maximum punishment of 18 months in state
prison and a criminal fine of $10,000.
The
indictment is merely an accusation and the
defendants are presumed innocent until proven
guilty.
State
Investigator Robert Stemmer and Deputy Attorney
General Nicole D. Rizzolo were assigned
to the investigation. Rizzolo presented
the case to the state grand jury. The New
Jersey Department of Banking and Insurance
provided assistance in the case.
“It
is particularly disturbing when licensed
insurance agents engage in fraud,”
said Insurance Fraud Prosecutor Greta Gooden
Brown. “We will continue to vigorously
prosecute those involved in this type of
criminal activity.”
Prosecutor
Brown noted that some important cases have
begun with anonymous tips from the public.
People who are concerned about insurance
cheating and have any information about
a fraud can report it anonymously by calling
our toll-free hotline at 1-877-55-FRAUD,
or visit our Web site at www.NJInsuranceFraud.org.
State regulations permit an award to be
paid to an eligible person who provides
information that leads to an arrest, prosecution
and conviction for insurance fraud.
The
Office of the Insurance Fraud Prosecutor
was established by the Automobile Insurance
Cost Reduction Act of 1998 (AICRA). The
Office is the centralized state agency that
investigates and prosecutes both civil and
criminal insurance fraud, as well as Medicaid
fraud. Criminal convictions for insurance
fraud can result in fines and imprisonment,
while civil penalties can include substantial
fines and referral for revocation or suspension
of professional licenses.
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