Return to New York Insurance Broker Fraud news on SSEM.COM
A Marsh and McLennan insurance broker pleaded guilty to a felony related to fraud and bid rigging and agreed to cooperate in the broad investigation of industry practices, the New York state attorney general's office said.
Robert Stearns, 40, a senior vice president and Marsh employee for more than 20 years, said that from September 2002 into 2004 he instructed insurance companies to submit non-competitive bids to obtain business contracts and that he conveyed those bids to Marsh clients under false pretenses.
The scheme "resulted in a rigged bidding process that defrauded insurance clients," the complaint said.
Stearns is the first Marsh employee to be charged. As part of his plea deal, he will forfeit his state insurance broker license, Spitzer's office said.
State Supreme Court Justice James A. Yates allowed Stearns to remain free without bail and set his next court appearance for April 17.
If you purchased insurance through or were a stockholder in any insurance broker, even if not listed above, please use the form below to contact our law firm for a free consultation to determine if you have a claim as a result of purchasing overpriced insurance.
Copyright © 1999-2008 Specter Specter Evans & Manogue, P.C.
Terms of Use | Privacy Policy