A New Jersey grand jury has indicted a Burlington County insurance agent for pocketing payments from three clients, according to Attorney General Paula T. Dow.
Lee Schaffer, of Marlton, was charged with insurance fraud, theft by failure to make required disposition of property received, and theft by deception.
The indictment stems from a four-month period in 2005 when Schaffer operated Focus Insurance Services. Authorities allege he prepared a fictitious insurance proposal and a fictitious insurance certificate of liability under the name of a fictitious insurance company, Custome Solutions, and used them in a transaction with Suburban Swim Association of South Jersey.
Schaffer allegedly received $14,413 in premium payments from Suburban Swim Association of South Jersey, Rancocas Valley Baseball League and Larchmont Barracudas Inc. for liability insurance, accident insurance, and directors’ and officers’ insurance, but failed to pay the premiums to Bollinger Insurance Co.. Instead, he allegedly kept the money for his own use.
He faces a maximum sentence of five years in state prison and a criminal fine of $15,000, as well as additional civil fines.
Source: New Jersey Attorney General
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