New Jersey Attorney General Peter Harvey announced that a Union County businessman and insurance agent has been ordered to repay the victims of an insurance fraud scam nearly $7,000 in premium monies he reportedly collected from clients seeking to buy auto and commercial liability insurance. As a result of the insurance fraud scheme, buyers were reportedly left vulnerable to financial loss had they been involved in an automobile accident or other event.
According to Vaughn McKoy, Director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden-Brown, Stanley Span, 71, of Bergen County, was sentenced on Oct. 24 by Union County Superior Court Judge Stuart Peim to serve three years probation and ordered to pay $6,740 in restitution to victims. Span also faces possible revocation of his insurance license and other administrative penalties.
Gooden Brown noted that Span was charged via a State Grand Jury indictment returned on July 17. The indictment charged Span, along with co-defendant Paul Kaplan, 49, Johnson Place, Union, Union County, with conspiracy, theft by deception, theft by failure to make required disposition of property received, and simulating a motor vehicle insurance identification card. Additionally, Kaplan was charged with bad checks. Span and Kaplan, licensed insurance agents, were officers of the now defunct Span Associates Insurance Agency located in Springfield, Union County. Kaplan reportedly failed to appear at an arraignment hearing and a bench warrant has issued for his arrest.
At a Sept. 8 guilty plea hearing before Judge Peim, Span reportedly admitted that between January, 2000 and December, 2001 to collecting insurance premium monies from clients seeking to purchase insurance and that he failed to forward the funds to the insurance companies. Span also is reported to have admitted selling fictitious insurance policies to potential insurance purchasers and issuing phony insurance identification cards to cover the thefts.
As a result of Span’s reported actions, insurance carriers never received applications or premium monies and no policies were issued, thus jeopardizing the health and safety of the buyers who believed they had obtained insurance coverage as required by law.
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