New York Agent Charged with Stealing Premiums

A New York state insurance agent has been charged for allegedly stealing $15,400 in premiums.

State police arrested Emil Feduniec, of Tuckahoe, after an investigation by the New York State Insurance Department’s Frauds Bureau and Consumer Services Bureau.

He is accused of leaving his customers exposed to liability when he failed to remit the premiums. One of the property owners lost $25,000 as the result of damage that occurred to the roof of a commercial structure he paid Feduniec to insure.

Feduniec collected premiums from the property owners in 2008 and 2009, but never paid the money to the insurance wholesaler with which he arranged to place policies with three property/casualty insurers. The policies were subsequently cancelled. Feduniec’s license to sell insurance expired in 2008 when he failed to renew it.

Investigators began looking into Feduniec’s activities after four of his customers contacted the Insurance Department’s Consumer Services Bureau. They complained that Feduniec failed to respond to inquiries when they contacted him asking for information about their policies.

Feduniec was charged with grand larceny, a felony, and could be sentenced to up to seven years in prison if he is convicted.

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Source: New York State Insurance Dept.

Topics Agencies Fraud New York