A Spring Lake couple pleaded guilty in Monday to stealing nearly $800,000 from seven insurance companies, the state attorney general said.
Brian P. Mohen, 47, pleaded guilty to second-degree misapplication of entrusted property and two counts of third-degree failure to file an income tax return, according to a release from Acting Attorney General John Hoffman.
Mohen’s wife, Lisa A. Stanko-Mohen, 48, pleaded guilty to one count of third-degree misapplication of entrusted property and two counts of third-degree failure to fine an income tax return, the release says.
Acting Attorney General John Hoffman announced that a central New Jersey husband and wife who ran a now-defunct insurance brokerage company have pleaded guilty to their roles in a scheme to steal more than $770,000 by failing to remit insurance premiums to seven insurance companies.
Brian P. Mohen, 47, who currently lives in Spring Lake but who lived in Far Hills Borough when the crime occurred, pleaded guilty yesterday (Oct. 28) to second-degree misapplication of entrusted property and two counts of third-degree failure to file an income tax return.
Sentencing is scheduled for Jan. 17, 2014. Under a plea agreement, the state will recommend an eight-year prison sentence for Mohen and five years probation for Stanko-Mohen. The couple also will be forced to pay $660,446 in restitution and $116,451 in unpaid taxes, including interest and penalty, the release says.
“The defendants had a fiduciary obligation to their clients to remit insurance premiums to insurance companies, but chose instead to selfishly line their own pockets,” Hoffman said in the release. “This type of crime, which ultimately increases insurance rates for honest New Jerseyans, will not be tolerated.”
Mohen admitted that between Feb. 28, 2007 and June 7, 2010, he was responsible for stealing about $770,768. Stanko-Mohen admitted that she was responsible for stealing more than $1,000, the release says.
The defendants also admitted to failing to file income tax returns for 2008 and 2009, failing to pay $49,900 in income tax for 2008 and $21,969 in 2009, the release says.
The Mohens, who lived in Far Hills at the time of the crimes, stole the money by failing to give premiums they received to seven companies - Indian Harbor Insurance Company -- $300,900, Great American Insurance Company -- $128,694, Catlin Specialty Insurance Company -- $123,250, XL Specialty -- $89,250, Navigators Insurance Company -- $71,823, The Camden Fire Insurance Association -- $52,650, and Greenwich Insurance Company -- $4,200, according to the release.
The couple were managing directors of Arden Financial Services, Inc., located in Far Hills Borough. The company specialized in the sale of management liability insurance.