TOWSON MAN PLEADS GUILTY TO OPERATING INSURANCE FRAUD SCHEME
Baltimore - Attorney General J. Joseph Curran, Jr., announced today that Stanley J. Page, 57, of Towson, Baltimore County, pled guilty to felony theft and three counts of insurance fraud in the Circuit Court for Baltimore County before Judge John Grason Turnbull, II.
The Statement of Facts presented to the Court in support of Page’s guilty plea established that between January and December 1998, Page arranged to finance insurance premiums two to three times for the same client’s policy. Page used much of the money converted to float his failing insurance business, make payments on premiums financed earlier and pay personal expenses. Page converted $968,247.68 in the scheme. Because he also used converted premium moneys to pay other financed premiums, the net theft totaled $593,693.66. Three premium finance companies suffered losses from the multiple financing of client’s policy premiums: Prime Rate Premium Finance Corp., Inc. lost $130,366.28, Credit Club Consumer Discount Co. lost $394,166.81 and Agency Services, Inc. lost $69,160.57.
Under the terms of the plea agreement, the State will be asking that Page receive a 10-year sentence with all but four years suspended and five years of probation. The State and Page agreed that the Court require Page to pay $254,447.97 in restitution to the three premium finance companies. Page is free to ask that the Court impose a lesser period of incarceration. Sentencing is scheduled for August 14, 2001 following a pre-sentence investigation, which was requested by the Court.
The criminal case followed a joint investigation conducted by the Insurance Fraud Division of the Maryland Insurance Administration, the Office of the Attorney General and the Maryland State Police.