A federal jury in New Jersey has found a California man guilty of selling bogus liability insurance policies.
The jury returned its verdict against 62-year-old Ronald Allen of North Hollywood, Calif., following a seven-day trial in Camden.
Prosecutors say Allen conspired with Houston-based insurance agent Gilbert Morgan to sell commercial liability policies to bar and nightclub owners around the country, including in New Jersey.
The policies were issued by a fictitious company created by Allen and never paid any claims.
Prosecutors say the men collected nearly $700,000 in premiums.
Allen faces a maximum possible sentence of 20 years in prison. Morgan pleaded guilty in September 2008 and is awaiting sentencing.
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