Gaithersburg Man Indicted for Fraud and Felony Theft

BALTIMORE, MD (May 27, 2008) - Attorney General Douglas F. Gansler announced today that Michael Elhawa, 39, of Gaithersburg, was indicted in the Circuit Court for Baltimore County for insurance fraud and felony theft.

The charges allege that during November 2006 through February 2007, Elhawa fraudulently stole almost $50,000 from Premium Finance of America, Inc. Elhawa, who was an insurance agent representing PFA at the time, used blank PFA checks and fabricated PFA accounts to enable the fraud. No trial date has been set.

Felony theft is punishable by a maximum sentence of 15 years incarceration and a $25,000 fine. Felony insurance fraud is punishable by a maximum sentence of 15 years incarceration and a $10,000 fine.

The indictment follows a joint investigation by the Insurance Fraud Division of the Maryland Insurance Administration and the Office of the Attorney General. A criminal charge is merely an accusation of wrongdoing and the defendant is presumed innocent unless the State proves he is guilty beyond a reasonable doubt.