Former Near North CEO Michael Segal was indicted on one count of insurance fraud by a federal grand jury, for purportedly filing bogus statements regarding the financial condition of his insurance brokerage to state regulators, according to Chicagobusiness.com.
The indictment alleges that Segal falsely declared a trust account intended for clients as fully funded, when it was in reality quite deficient of funds. Segal reported this to the Illinois Department of Insurance.
Segal defended his innocence, stating the indictment is centered on technicalities in the accounting. He stated no money was missing and no client has been harmed.
The indictment was limited compared to earlier charges by prosecutors that Segal misappropriated more than $20 million from the trust account.
Segal’s attorney, Harvey Silets suggested that the limited indictment might be due to the lack of evidence to back the original criminal complaint.
Federal prosecutors stated that the indictment prohibits them from revealing details of what they know about Segal’s activities and are continuing their investigation.
Segal is out on a $750,000 signature bond.
His firm’s parent company, Near North National Group Inc., has formed its first outside board of directors.
Topics Fraud
Was this article valuable?
Here are more articles you may enjoy.
Law Firm Faces Sanctions for Failing to Vet Ugandan Claims in $6B 3M Case 
Supreme Court Rejects Challenge to $2.46B Boy Scouts Sex Abuse Settlement 
Tesla Door Design Is Targeted by New US Automotive Safety Bill 
Good Times for US P/C Insurers May Not Last; Auto Challenges Ahead 
