Former California Insurance Agent Convicted for Stealing $3.7 Million in Premium Finance Fraud
A former insurance agent has pleaded guilty to wire fraud after embezzling over $3.7 million from a premium finance company, according to a California Department of Insurance (CDI) investigation. Tonja Van Roy’s Fraudulent Scheme UnveiledTonja Van Roy, 59, who previously ran an insurance agency in Northridge, California, and now resides in Las Vegas, admitted to stealing millions from AFCO Credit Corporation. The fraudulent activities spanned from January 2021 to December 2023, during which Van Roy submitted numerous fictitious loan applications through AFCO’s system, leading to the disbursement of funds directly into her trust account. Former California Insurance Agent The investigation revealed that Van Roy fabricated details on the loan applications, including fake insurance policy numbers and forged signatures, and used two addresses she rented for multiple fictitious clients. She diverted the funds for personal luxury purchases and repaid initial loans with money from subsequent fraudulent loans, mimicking a Ponzi scheme. Van Roy’s actions resulted in AFCO disbursing about $3.7 million, of which approximately $1.8 million remains unpaid after some repayments using funds from newer fraudulent loans. Legal Proceedings and Next StepsThe case, handled by the Major Frauds Section of the U.S. Attorney’s Office in Los Angeles, will see Van Roy return to court for sentencing on March 31. Former California Insurance Agent For more on this and similar cases, visit JacobiJournal.com. To read further, check out the full report on Business Insurance.
Key Insights from the 2024 Bank Tax Institute: Tax Policy, Strategies, and the Election’s Impact
The 2024 Bank Tax Institute took place in Orlando during election week. Tax professionals, financial institutions, and experts gathered to discuss the future of tax policy. This year, the discussions focused on the election results, ongoing tax issues, and strategies for managing tax liabilities. This article covers the key takeaways, including the election’s impact, tax planning, and upcoming regulatory challenges. The Election’s Impact on Bank Tax Planning Much of the conference focused on the 2024 election results and the implications of the 2017 Tax Cuts and Jobs Act (TCJA). The quick election outcome shifted attention to the TCJA’s expiring provisions and their potential impact on tax planning for financial institutions. 2024 Bank Tax Institute If the TCJA is not extended, banks can expect several key changes: Though financial services transactions are not yet subject to tariffs, lobbyists continue to push against unfair targeting of banks. Many institutions argue that their already high effective tax rates make additional burdens difficult to bear. Tax Planning Strategies for Banks Tax-saving strategies were a major focus at the conference. Energy credits emerged as a key area where banks can take advantage of growing opportunities. As more energy producers come online, smaller banks gain access to tax-saving benefits. Another major topic was Bank-Owned Life Insurance. Section 1035 tax-free policy exchanges offer banks a chance to replace policies acquired under less-than-ideal market conditions. Politics, Pending Legislation, and Regulatory Changes With a business-focused administration in power, many attendees hope for reduced regulatory burdens. The current regulatory environment causes delays in mergers and acquisitions. These delays lead to higher administrative costs and the loss of valuable resources. IRS Tax Enforcement and State-Level Scrutiny A session featured Holly Paz, Deputy Commissioner of the IRS’s Large Corporation division. She discussed the agency’s enhanced enforcement efforts, fueled by additional funds from Congress. These measures will likely lead to more audits for banks in the near future. At the state and local levels, more states are ramping up their examination of banks. This growing scrutiny is adding to the tax burden for both financial institutions and individual shareholders.contributing to a higher tax burden for both financial institutions and individual shareholders. For more insights on tax policy developments, visit Jacobi Journal. You can also read the full article and learn more from the original source here. Stay tuned as we continue to monitor these changes and provide you with timely updates on tax policies that affect the banking sector.
OSHA Holds Maine Contractor Accountable After Fatal Trench Collapse
Fatal Trench Collapse: A federal investigation by the Occupational Safety and Health Administration (OSHA) revealed that Patriot Paving Group LLC, a Glenburn, Maine-based contractor, ignored multiple warnings and its own safety protocols before a deadly accident at a Brownville worksite. The incident occurred in June 2024 when an unbraced retaining wall collapsed, crushing one worker while another narrowly escaped. Fatal Trench Collapse: Timeline of the Incident Two employees were installing storm drainage pipes in a three-to-four-foot-deep trench when Clifford Lane, the company’s owner, operated an excavator dangerously close to the retaining wall. The excavation destabilized the wall, causing a 40-to-60-foot-long section to collapse. Despite being aware of the wall’s instability, Lane failed to implement necessary safety measures or evacuate workers from the hazardous area, according to OSHA investigators. OSHA’s Findings and Penalties OSHA’s investigation identified five willful violations, including: As a result, OSHA proposed fines totaling $161,325. Patriot Paving Group LLC now faces a 15-business-day window to either comply, request an informal conference with OSHA’s area director, or contest the citations through OSHA’s independent review commission. Lessons in Safety Compliance This tragic event underscores the critical importance of adhering to safety protocols, particularly in hazardous industries such as excavation and site preparation. The consequences of neglecting safety warnings and plans can be catastrophic, as demonstrated in this case. For more insights and updates on workplace safety and compliance, visit Jacobi Journal. To read the original source of this report, click here.
Intoxicated Worker’s Injury Claim Approved Despite Employer Objections
Intoxicated Worker’s Injury: In a significant ruling, a New York appellate court upheld a Workers’ Compensation Board decision granting benefits to an injured employee who was intoxicated at the time of his workplace accident. The court found that while intoxication contributed to the fall, it was not the sole cause, affirming the employee’s right to compensation under state law. Intoxicated Worker’s Injury: Background of the Case The worker, employed by an electrical contracting company, sustained serious injuries when he fell approximately eight feet from a ladder while retrieving items from an elevated shelf. A toxicology report revealed that the employee was severely intoxicated at the time of the accident. Despite this, the court determined other factors contributed to the fall, making the claim compensable. Legal Framework and Presumption of Compensability New York’s Workers’ Compensation Law presumes that injuries occurring during employment are compensable, except when intoxication is the sole cause of the accident. The burden of proof falls heavily on the employer and insurance carrier to demonstrate that intoxication alone caused the injury. In this case, the employer and their insurer denied the claim, arguing that the worker’s intoxication was the sole cause of the accident. However, the Workers’ Compensation Board disagreed, ruling in favor of the employee. Evidence Presented The employee testified that on the day of the incident, he was working alone due to a busy schedule, a deviation from the standard practice of having one worker hold the ladder while another climbed. He explained that as he descended the ladder carrying a heavy object, the ladder shifted and collapsed, causing him to fall. The employer’s general manager, relying on secondhand information, claimed the fall was due to the worker misplacing his foot. A medical toxicology expert confirmed that severe intoxication impairs balance and judgment, but acknowledged that factors such as a wobbly ladder, carrying heavy items, or working without assistance could independently increase the risk of falling. Court’s Findings The appellate court concluded that substantial evidence supported the Workers’ Compensation Board’s decision. It noted that several factors—including the absence of a colleague to steady the ladder, the inherent risks of working at height, and the lack of safety features—could have contributed to the accident. While intoxication played a role, the court ruled that it was not the sole cause. Consequently, the presumption of compensability remained intact, and the carrier’s appeal was denied. Implications for Employers and Workers This decision reinforces the high burden employers face when denying workers’ compensation claims on the grounds of intoxication. It also highlights the importance of maintaining workplace safety protocols, including proper supervision and equipment use. For more in-depth coverage of legal and workplace issues, visit JacobiJournal.com. Source: Supreme Court, Appellate Division (Third Judicial Department) Read the original decision here.
Cal/OSHA Fines Animal Shelter $563K Over Employee Safety Failures
Worker Injury Spurs Significant Penalties Employee Safety Failures: A San Pedro animal services center faces $563,250 in fines after a serious workplace injury exposed critical safety violations. The California Division of Occupational Safety and Health (Cal/OSHA) penalized Harbor Animal Services Center following an incident where an employee’s leg was mauled by a dog on May 31, 2024. The injury, which required hospitalization, highlighted longstanding safety lapses at the facility. Overcrowding and Training Failures Identified Cal/OSHA’s investigation revealed multiple failures by Harbor Animal Services Center to protect its workers. These findings include: These violations directly contributed to the serious injury sustained by the employee, according to Cal/OSHA. Nature of the Citations Harbor Animal Services Center, operated by Los Angeles City Animal Services, received citations for six violations. These include one general violation, two willful serious violations, and three willful serious accident-related violations. The willful nature of these offenses underscores the employer’s disregard for worker safety. Employer Accountability “Employers have a legal obligation to maintain a safe workplace,” stated a Cal/OSHA representative. The penalties issued to Harbor Animal Services Center reflect the seriousness of their safety failures and the impact on employee well-being. Learn More About Workplace Safety Stay informed about workplace safety regulations and enforcement by visiting Jacobijournal.com, your trusted source for legal and safety news. For additional details, read the full report on the Cal/OSHA website here.
New York Broker Admits Role in $38 Million Nursing Home Tax Fraud Scheme
Nursing Home Tax Fraud: Joseph Schwartz, a New York insurance broker and former operator of a multistate nursing home chain, has pleaded guilty to charges connected to a $38 million employment tax fraud scheme. Prosecutors revealed that Schwartz withheld employment taxes from employees of his company, Skyline Management Group LLC, but failed to pay them to the IRS. A Complex Web of Financial Misconduct U.S. Attorney Philip R. Sellinger described Schwartz’s actions as a calculated effort to defraud taxpayers. “Schwartz ran a vast, multistate nursing home empire, but cheated taxpayers out of more than $38 million so he could line his own pockets. Having admitted his crime, he will now be held accountable,” Sellinger said. Skyline, headquartered in New Jersey, operated health care and rehabilitation facilities across 11 states. Schwartz financed the rapid expansion of his business by selling his insurance company for $22 million. In addition to the sale proceeds, Schwartz secured an employment contract with the buyer, granting him a $300,000 annual salary and commission rights for insurance policies sold to Skyline-owned facilities. As Skyline grew, Schwartz profited significantly by selling more policies, earning increasing commissions from the insurance buyer. To facilitate operations, he created staffing and management services entities for roughly 15,000 employees working at Skyline facilities. In 2018, he transferred employees from 89 facilities into seven staffing companies, each corresponding to a state where Skyline operated. Despite nominal ownership by others, Schwartz controlled the finances of these companies. Misuse of Employee Withholdings Between October 2017 and May 2018, Schwartz withheld taxes from employee paychecks but failed to remit more than $38 million in employment taxes to the IRS. Instead of fulfilling his legal obligation, Schwartz diverted the funds for personal use and to cover unrelated expenses of the staffing companies. Additionally, Schwartz neglected his duties as administrator of Skyline’s 401K retirement plan. Federal law required him to file an annual Form 5500 financial report for 2018 with the Department of Labor, but he deliberately failed to submit the report. Legal Consequences and Sentencing Schwartz now faces severe penalties. The employment tax fraud charge carries a maximum sentence of five years in prison and a $250,000 fine, or twice the financial gain or loss associated with the offense. The failure to file the 401K financial report is punishable by up to 10 years in prison and another $250,000 fine. Sentencing is scheduled for April 10, 2025, in Newark federal court. Implications for the Healthcare Industry This case underscores the risks associated with unchecked financial practices in the healthcare sector. Schwartz’s misconduct not only defrauded taxpayers but also jeopardized the financial security of thousands of employees. As legal proceedings unfold, the need for stricter oversight of multistate healthcare organizations becomes increasingly apparent. For more insights into financial fraud and its impact on the healthcare sector, visit jacobijournal.com. Related Reads:
2024 Individual Tax Update: Key Changes and Implications
2024 Individual Tax Update Key Updates for 2024 Planning Ahead To make the most of these updates: Why These Changes Matter Understanding the 2024 tax updates is essential for effective financial planning. Staying informed enables individuals to take advantage of new benefits while ensuring compliance with changing tax laws. Key Strategies for Implementation Why This Matters 2024 Individual Tax Update: Fraud investigations are inherently stressful, and trauma can compound the difficulty of obtaining reliable information. By adopting a trauma-informed approach, insurers can: Learn more about this innovative approach by exploring the full article on Insurance Fraud.org: Read More. For more updates on legal actions and regulatory news, visit Jacobi Journal.
Combatting Transnational Organized Crime: Strategies for Insurance Investigators
Combatting Transnational Organized Crime: Transnational organized crime poses a significant threat to the insurance industry, particularly through sophisticated vehicle-related fraud schemes. These criminal networks operate across borders, exploiting systemic vulnerabilities to perpetrate large-scale insurance fraud. According to an article from Insurance Fraud.org, these schemes are becoming increasingly complex, requiring advanced investigative strategies to address them effectively. Structure and Motivation of Criminal Networks These organizations resemble traditional businesses, with hierarchical structures comprising individuals with diverse skill sets. Lower-level operatives, often driven by economic hardship, execute the physical aspects of crimes, while professionals such as lawyers, accountants, and IT experts facilitate and conceal illicit activities. Their primary motivation is financial gain, achieved by exploiting disparities in international laws and enforcement to evade detection. Impact on the Insurance Industry Combatting Transnational Organized Crime: The involvement of transnational crime groups in insurance fraud, especially through vehicle-related schemes, leads to substantial financial losses for insurers and policyholders. These activities contribute to increased premiums and strain customer service resources. The complexity and scale of such frauds necessitate advanced investigative strategies to combat them effectively. Strategies for Insurance Investigators To address this challenge, insurance investigators should: Conclusion By adopting these measures, the insurance industry can strengthen its defences against the pervasive threat of transnational organized crime. The article from Insurance Fraud.org highlights the importance of innovative approaches, collaboration, and public awareness in tackling these complex challenges. For more updates on legal actions and regulatory news, visit Jacobi Journal. For more updates on legal actions and regulatory news, visit Jacobi Journal.
Investigations: Leveraging Experience, Relationships, and Technological Expertise
Leveraging Experience: At NICB, we understand that while the shortest distance between two points is often a straight line, investigations into insurance crimes rarely follow such a clear path. Instead, they are filled with twists, turns, and unexpected obstacles that can derail progress. This is where our 100+ years of relationship-building experience come into play. Our deep connections with member insurance companies, law enforcement agencies, and public organizations are crucial in navigating these complexities, helping us detect, deter, and prevent insurance crimes. Leveraging Experience: Our Investigative Approach NICB’s investigations focus on multi-claim, multi-carrier efforts to address major criminal activities, working closely with both our members and law enforcement agencies nationwide. We are the only private organization in the country that takes a multi-carrier approach to combat fraud and theft. Leveraging Experience NICB Agents: A Force Multiplier in Fighting Fraud NICB agents play a pivotal role in our investigations, serving our members and collaborating with law enforcement agencies across eight regional field offices. Through our electronic claim referral process, NICB agents partner with representatives from member company claims and special investigation units, as well as law enforcement professionals, to investigate suspicious insurance claims and support the civil and criminal prosecution of vehicle theft and insurance fraud. Our investigators are also key players in numerous insurance crime task forces across the country. Investigative Assistance (IA) Group The IA Group handles phone and email inquiries from law enforcement and NICB members. With their in-depth knowledge and access to vast data resources, they provide crucial information that leads to thousands of vehicle recoveries and investigative leads each year. According to a report from https://www.nicb.org/ For more updates on legal actions and regulatory news, visit Jacobi Journal