N.Y. Agent Arrested on 50 Counts of Insurance Fraud

January 28, 2004

New York State Insurance Department Superintendent Gregory V. Serio announced the arrest of Lon T. Horton, who has been charged with 43 counts of issuing fraudulent certificates of insurance, two counts of insurance fraud, four counts of petit larceny and one count of falsifying business records.

He was identified as the owner of Horton Insurance Services, located at 3773 Lake Road in Brockport. His license has been suspended pending a hearing.

According to the NYSID’s bulletin, “An investigation revealed that Mr. Horton issued fraudulent certificates of workers’ compensation insurance to self-employed persons as evidence of coverage for potential employers. As a result, businesses employing these individuals were improperly charged workers’ compensation rates based on this fraudulent information. To date, businesses have been assessed additional rate charges in excess of $100,000.”

It also said that Horton is alleged to have taken workers’ compensation premiums from prospective insureds but never placed insurance with an insurance carrier.

He was arrested yesterday and arraigned before Town of Clarkson Justice Alan Hammel and released on his own recognizance to reappear on April 15, 2004. He faces up to seven years in prison if convicted.

The report also noted that Horton had been arrested in September 2003 on similar charges. The Department urged any New Yorkers who may have questions or concerns about their dealings with Mr. Horton or Horton Insurance Services to call the Insurance Department’s Buffalo office at 716-847-7176.

“The investigation into Mr. Horton’s actions was a joint effort by the Insurance Department’s Frauds Bureau, the New York State Insurance Fund, the New York State Workers’ Compensation Board Fraud Inspector General’s office, and the Monroe County District Attorney’s Office,” the bulletin concluded.

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