New York authorities announced that a Rochester, New York, couple has been charged with defrauding their Rochester insurance agency clients.
Gary Gubiotti and Bonnie Gubiotti, both 67, are accused of stealing more than $150,000 from clients by falsely inflating insurance premiums, failing to remit refunds, and forging finance agreements from 2011 to 2014.
The Gubiottis and their insurance agency, the Gubiotti Agency Inc., are charged in an 11-count indictment with grand larceny, criminal possession of a forged instrument, insurance fraud and scheme to defraud, and if convicted face up to 15 years in prison.
New York Attorney General Eric T. Schneiderman announced the arrest and indictment of the Rochester couple on Jan. 5.
According to the indictment and statements made by the prosecutor at arraignment, the Guibottis scheme included allegedly submitting forged applications to a finance company in the name of one of their corporate clients, thereby fraudulently obtaining thousands of dollars.
The Gubiottis also allegedly failed to make payments on that client’s insurance policies, instead pocketing over $47,000 in premiums for themselves. The Gubiottis also allegedly falsely inflated a second client’s insurance premiums and kept over $108,000 in overpayments, and also failed to remit an insurance refund of over $12,000.
The prosecutor further stated that the Gubiottis allegedly perpetuated their scheme to defraud by forging client signatures on policy and financing applications.
The charges against the Gubiotti Agency and the Gubiottis are allegations and they are presumed innocent until proven guilty in a court of law.
The attorney general’s office said the investigation remains ongoing.
The New York State Police, the New York State Insurance Fund, Marketscout Corporation, Lancer Insurance Company, Superior Finance Plan LLC, and QBE Insurance Corporation assisted in the investigation.
Source: New York Attorney General Eric T. Schneiderman’s office