Jericho Broker Pleads Guilty to $830K Insurance Scam


A Jericho insurance broker pleaded guilty to stealing a total of $829,963.53 in insurance premiums and other funds from clients to pay for his personal expenses, acting Nassau County District Attorney Madeline Singas announced Monday.

Joseph Koch, 57, was arrested in Aug. 2012 after an investigation revealed that he was using insurance premiums, that he was supposed to forward to insurance companies on behalf of his clients, to pay for his Mercedes Benz, mortgage bills, country club membership fees, gambling trips and more, the DA’s office said.

Koch pleaded guilty to second degree grand larceny and first degree scheme to defraud.

“Clients trusted the defendant, but he betrayed that trust and used the money to fund a lavish lifestyle,” Singas said in a statement. “Because of the defendant’s theft, his clients were left without coverage and were exposed to serious liability issues.”

Here’s what he did:

Between May 8, 2009 and March 31, 2010, Koch was paid $648,074.13 in insurance premiums from a Queens commercial property management company. He did not forwarded the money to the several insurance companies for which he was acting as agent, the DA reports.
On June 26, 2009, Koch then stole $10,572.56 from the same Queens commercial property management company as a premium payment made by the company for an insurance policy that Koch never purchased on their behalf, the DA reports.
Koch did not forward insurance premium payments made by clients to insurance companies and insurance brokers, including: $51,244.50 to an insurance company in Cincinnati; $20,000 to an insurance broker in Woodbridge, NJ; and $2,525.40 to an insurance broker in Fairview Park, Ohio
Koch allegedly stole $97,546.94 from a Florida woman, consisting of funds that were given to Koch to the woman’s benefit by three of her family members to be paid out to the woman in a certain amount each month until the funds were exhausted, according to the DA.

Koch is due back in court on Dec. 8.



Leave a Comment

Your email address will not be published. Required fields are marked *