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TRENTON
- Attorney General Paula T. Dow and Criminal
Justice Director Stephen J. Taylor announced
that a Marlton insurance producer was named
in a Burlington County grand jury indictment
for failing to remit premium payments from
three clients.
According
to Acting Insurance Fraud Prosecutor Riza
Dagli, Lee Schaffer, 55, of Marlton, was
charged with insurance fraud, theft by failure
to make required disposition of property
received, and theft by deception, all third-degree
charges. The indictment was handed up yesterday.
The indictment alleges that between March
16 and July 8, 2005, Schaffer, an insurance
producer who operated Focus Insurance Services,
prepared a fictitious insurance proposal
and a fictitious insurance certificate of
liability under the name of a fictitious
insurance company, Custome Solutions, and
used them in a transaction with Suburban
Swim Association of South Jersey. Schaffer
allegedly received $14,413 in premium payments
from Suburban Swim Association of South
Jersey, Rancocas Valley Baseball League
and Larchmont Barracudas Inc. for liability
insurance, accident insurance, and directors’
and officers’ insurance, but failed
to pay the premiums to Bollinger Insurance
Company. Instead, he allegedly kept the
money for his own use.
Third-degree
crimes carry a maximum sentence of five
years in state prison and a criminal fine
of $15,000. Schaffer also may face civil
fines under the Insurance Fraud Prevention
Act. The indictment is merely an accusation
and the defendant is presumed innocent until
proven guilty. The indictment was handed
up in Superior Court in Burlington County,
where Schaffer will be ordered to appear
at a later date to answer the charges.
The
investigation into this matter was conducted
by Detective Nicole Eiker and Deputy Attorney
General Joan M. Burke of the Division of
Criminal Justice’s Office of the Insurance
Fraud Prosecutor. Deputy Attorney General
Burke presented the case to the grand jury.
The
Department of Banking and Insurance routinely
assists OIFP in the investigation and prosecution
of licensed insurance producers. This assistance
enables the state to coordinate criminal
investigations and prosecutions with any
imposition of licensing sanctions.
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