Diane D. Murray, Mr. Murray's wife, was charged with theft and conspiracy and filing false corporate and personal tax returns. Mr. Corbett said Ms. Murray allegedly diverted money from another business to her husband's agency, which declared bankruptcy in 2008.

Timothy G. Shean, the husband of Ms. Oliver-Shean, was charged with conspiracy, tampering with evidence and obstruction because he allegedly tried to hide company records from investigators, Mr. Corbett said.

Mr. Murray and Ms. Oliver-Shean are also charged with using an offshore business in the Virgin Islands to allegedly shuttle more than $10 million in income to avoid paying state taxes, Mr. Corbett said.

Mr. Murray was arrested in early July for allegedly stealing $1.3 million in premium payments collected by his company. The new arrests and additional charges are the result of an additional investigation from Mr. Murray's previous arrest, Mr. Corbett said.

According to the indictment, the agency's alleged criminal past began when Mr. Murray caught Ms. Oliver-Shean taking tens of thousands of dollars from the agency. But instead of firing her, he made her president of the agency and the two launched the alleged pyramid scheme in which loans were taken out in the names of clients without their knowledge. Each year, more and more loans were taken out to meet the payments.

Mr. Corbett said criminal charges of multiple felony counts were also filed against three businesses--Murray Insurance Agency, Mallow Holding Company and Gaffer Insurance Company Ltd.