Ohio Exec Indicted In $6 M Scheme
By Mark E. Ruquet
NU Online News Service, July 3, 4:15 p.m. EDT--The former president and chief executive officer of Credit General Insurance Company was indicted by a federal grand jury in Ohio on charges of pocketing more than $6 million for his own use.
The U.S. District Attorney's office for the Northern District of Ohio, in Cleveland, released a 16-count federal grand jury indictment against Robert J. Lucia.
According to the grand jury, over a four-year period from 1995 to 1999, Mr. Lucia diverted $6.1 million in premium payments to his personal bank accounts. The money, the indictment charges, was used for payments of property taxes and purchases of other personal assets.
According to the Ohio Department of Insurance, insurance company Credit General of Beachwood, Ohio, was subject to a financial exam in late 1999 after the department was tipped off to problems. The department said it uncovered questionable practices as a result of the probe. Further investigation lead to the company's liquidation in December of 2000 and evidence being turned over to the U.S. Attorney's office.
The indictment of Mr. Lucia includes three counts of tax evasion and 13 counts involving money laundering and bank fraud.
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