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Insurance broker admits stealing nearly $1 million

5-14-14

TRENTON, N.J. (AP) — Federal prosecutors say an insurance broker has admitted stealing nearly $1 million while selling health care coverage he knew was fake.

Seventy-year-old David Clark of Morristown pleaded guilty Wednesday to conspiracy to commit wire fraud. He faces up to 20 years in prison when he’s sentenced Aug. 20.

Clark owned and operated a firm as a purported labor organization and a way to market and sell health insurance to the public. The federal government eventually notified Clark that his firm didn’t qualify as a labor organization and told him to stop operations, but Clark continued to market and sell the health insurance plans.

Clark and his conspirators collected nearly $1.8 million in premiums from December 2008 to July 2011. Clark diverted roughly $962,027 from those premiums for his personal use.