BROKER CONVICTED OF MISAPPROPRIATION

Attorney General J. Joseph Curran, Jr., announced today that Roger S. Ney, 50, of McLean, Virginia was convicted of misappropriation by a fiduciary. Ney pled guilty to a six (6) count criminal information filed in the Circuit Court for Montgomery County.

According to the Statement of Facts presented to the Honorable D. Warren Donohoe, between January 1, 2002 and March 31, 2003, Ney misappropriated $139,308.70 from sixteen (16) different van pool businesses across the United States by adding fees to premiums set by the insurer, Lancer Insurance Company of New York State. Ney operated various insurance businesses in Montgomery County, Maryland. Ney illegally added fees to premiums set by Lancer to make up for lost commissions caused when Ney had to switch insurers from Kemper to Lancer. Kemper paid 20% in commissions and Lancer paid only 10%. Lancer discovered that Ney was adding improper fees when they discovered that Ney had altered policy declaration pages (called “dec sheets”) to reflect the fee amount.

Judge Donohue sentenced Ney to one year in the Montgomery County Detention Center, suspended the sentence and placed Ney on two years supervised probation.

The charges and conviction followed a joint investigation conducted by the Insurance Fraud Division of the Maryland Insurance Administration the Maryland State Police and the Office of the Attorney General.
 

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