Post Date July, 26 2012 – A car insurance broker whom also marketed health insurance products from Baltimore, Maryland pleaded guilty recently to stealing more than $2 million from the Perth Amboy Board of Education and the City of Perth Amboy in New Jersey. Francis Gartland of Gartland and Co. along with his other two companies, the Federal Hill Risk Management and E-Administrative Systems pleaded guilty before the superior court in Middlesex County, to charges of second-degree theft by deception and first-degree money laundering. Since the Health Insurance Premiums were on an agency bill basis, it was obviously easy to invoice the health insurance premium and collect the money. Of course a car insurance broker would have a very difficult time stealing car insurance premiums since most companies collect on their own monthly bills.
Car Insurance Broker Defrauds Perth Amboy, NJ
According to the Office of the Attorney General in New Jersey, Gartland defrauded the Perth Amboy New Jersey Board Education from November 2003 to July 2009 through his insurance agency, Gartland and Co., obtaining $2,593,400 for charging it with non-existent healthcare related services that included employee assistance and wellness programs. In addition to this, from January 2005 to July 2009, Gartland and others through the Federal Hill Risk Management were said to have fraudulently obtained $216,495 from the City of Perth Amboy by making false representations to Perth Amboy’s medical insurance carrier. Under Gartland’s plea agreement, he will be recommended for 15 years sentence in a state prison for the money laundering charge, and seven years for the theft charge. The sentences is said to run concurrently. Gartland will not be eligible for parole for 7.5 years. Sentencing is set on September 10, 2012. Although the insurance broker was charged with retaining health insurance premiums, at no time was being a car insurance broker or car insurance products part of the charges.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
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