A federal jury convicted politically connected Chicago broker Michael Segal of embezzling more than $20 million from his own insurance brokerage firm.
Michael Segal—known for having close ties to powerful politicians in both parties—was found guilty on all charges: mail fraud, wire fraud, making false statements, embezzlement, tax conspiracy and racketeering.
Assistant U.S. Attorney William Hogan said he faced at least 20 years in prison. Segal’s company, Near North Insurance Brokerage Inc., also was convicted on charges including mail fraud and embezzlement.
The jury Tuesday will decide how much money Segal must turn over to the government.
“I’m disappointed but I’m holding up,” the 61-year-old Segal said. He was free on $1 million bond and was ordered to wear an electronic monitor and to travel only between his home and court.
Randall Samborn, a spokesman for the U.S. attorney, declined to comment until the jury decides the forfeiture issue.
During the trial, prosecutors called numerous witnesses to testify Segal took money from a restricted account despite warnings it was illegal to do so, and spent the money on a lavish lifestyle and expanding his business.
Assistant U.S. Attorney Virginia Kendall said the money came from a premium fund account that Segal was required by law to hold in trust for customers. “Instead, he was stealing it,” she said.
Prosecutors also said Segal also kept a VIP list of customers, including politicians and other prominent Chicago business people, who would receive insurance discounts _ some of 100 percent, a practice barred by state law.
They said then-Gov. George Ryan called the Illinois Department of Insurance when it was looking into Segal’s business and expressed his hope Segal would be OK.
The defense said Segal was a victim of shoddy accounting practices and scheming underlings who were motivated by greed and vengeance. Attorney Daniel Reidy repeatedly told jurors no customer of Near North was hurt.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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