The indictment was announced by Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois in Chicago.

Mr. Segal was alleged to have "looted" the firm's premium trust fund account of millions of dollars over a 12-year period. The amounts ranged from $5 million at the end of 1990 to $24 million by 2001, prosecutors said.

Arrested in late January of this year, Mr. Segal was originally charged with insurance and mail fraud. The racketeering charge is new, and prosecutors said, they can seek forfeiture of at least $20 million, and his residence in Highland Park.

If convicted, Mr. Segal could face in excess of 20 years in prison and fines of $250,000 for each count in the indictment.

Mr. Segal is currently free on $750,000 bail.

Mr. Segal was quoted in the Chicago Tribune as saying he has faith in the justice system and looks forward to vindication in court.

According to several published reports, Near North and Mr. Segal have sued Chicago-based Aon and USI Insurance Services Corp. - based in San Francisco, and several former Near North executives for breach of contract. Near North accuses the executives of violating their non-compete agreement and stealing information from the broker.

Mr. Segal is also fighting to keep his insurance license in California, where officials there have moved to disqualify him from practicing in the state.