- Attorney General Paula T. Dow and Criminal
Justice Director Stephen J. Taylor announced
that a Passaic County man pleaded guilty
today to misappropriating more than $300,000
in insurance premiums.
to Acting Insurance Fraud Prosecutor Riza
Dagli, Richard Pisacane, 65, of Wayne, pleaded
guilty to second-degree misapplication of
entrusted property before Superior Court
Judge Lourdes I. Santiago in Hudson County.
The charge was contained in a Feb. 23, 2010
Hudson County grand jury indictment.
Santiago scheduled sentencing for Sept.
17. Under the plea agreement, the state
will recommend a five-year prison sentence.
Pisacane will also be ordered to pay $300,355
in restitution to Lincoln General Insurance
Pisacane was the CEO of the now-defunct
insurance brokerage firm Northern Financial
Group, Inc., which was located in Bayonne
and was an agent for Lincoln General Insurance
Company. At the guilty plea hearing, Pisacane
admitted that between Feb. 12, 2004 and
March 31, 2005, he received more than $300,000
in insurance premiums from numerous customers
who were purchasing commercial insurance,
yet he failed to the remit the premiums
to Lincoln General. Pisacane admitted that
he kept the funds for his personal use,
including paying for his children’s
college tuitions and making credit card
and car payments. An investigation determined
that Pisacane failed to remit $300,355.
Matthew Armstrong, Analysts Christina Runkle,
Paula Carter and Marie Beyer, and Deputy
Attorney General Nicole D. Rizzolo were
assigned to the investigation. Deputy Attorney
General Rizzolo represented the Office of
the Insurance Fraud Prosecutor at the guilty
Department of Banking and Insurance routinely
assists the Office of the Insurance Fraud
Prosecutor with the investigation and prosecution
of licensed insurance agents. This assistance
enables the state to coordinate criminal
investigations and prosecutions with any
imposition of licensing sanctions in order
to protect the public.