Agent Allegedly Duped Customer into Agency Investment; Third Time Facing Fraud Charges

For the third time in less that two and one-half years, a western Pennsylvania insurance agent is facing charges regarding fraudulent business practices — this time for deceiving a long-time insurance customer into investing more than $75,000 in his insurance agency.

The latest victim emptied a retirement account and provided the money to Chad Skena — but never received a dollar back on the investment, according to prosecutors.

Skena allegedly contacted the victim and claimed that he was in the process of buying out his father’s insurance agency and that he was looking for someone to invest in this venture. He convinced the victim to give him more than $75,000 with the understanding that he would return the “investment” in the amount of $120,000 over the course of one year.

Shortly after receiving the money, Skena told an investigator with Progressive Insurance that he had recently obtained a “$75,000 personal loan” to keep his insurance agency financially solvent.

Additionally, Skena provided the victim with a mortgage document for Skena’s residence as a backing for the investment. However, the document proved worthless as Skena had the terms written to only go in effect if the victim were to pay $80,000 for the “investment” (which the victim did not).

Skena, of Monroeville, was charged in Armstrong County with insurance fraud, theft by deception, deceptive business practices, and securing execution of documents by deception, according to Attorney General Dave Sunday. His bail was set at $50,000 unsecured, and a preliminary hearing is scheduled for October 14.

This is the third time Skena has been charged with fraud since April 2024, according to Sunday. The first two waves of charges involved the theft of approximately $70,000 in client insurance premium payments from a total of 16 victims in Allegheny County between 2020 and 2022, Sunday reported.

“This defendant has repeatedly taken advantage of trusting clients to line his own pockets — this time, lying about an investment he knew full well did not even exist,” Sunday said. “The publication of the defendant’s prior bad acts prompted this victim to come forward, and our Insurance Fraud Section took it from there.”

Skena’s insurance licenses were revoked on March 17.

The charges are merely allegations and Skena is presumed innocent until and unless proven guilty.

Topics Agencies Fraud