Insurance Fraud NEWS
Accountant steals Jersey broker’s premiums in $900K con
May 21, 2019, Bergen County, NJ
A former bookkeeper for a Bergen County-based insurance broker was sentenced to more than 2 years in federal prison for embezzling $900,000 from her employer over seven years through fraudulent accounting entries, authorities said.
Violeta McGough, 57, of Bergenfield, pleaded guilty to wire fraud. In addition to 27 months in prison, she faces three years of supervised release under the sentence levied Monday in federal court, the U.S. Attorney’s Office said.
McGough was an accounting specialist for the Ridgefield Park insurance broker, which was not named in the criminal complaint, and used her access to the company’s books to steal money from insurance premium revenue, authorities said.
The scam involved transactions and credits from a United Kingdom-based finance company. McGough hid the thefts, typically between $4,000 and $8,000 each, by issuing refunds for cancelled polices and enlisted the help of another person to divert the money to her personal bank account, authorities said.
The scam ran from 2008 to October 2015, when the insurance broker was acquired by another firm and a change in accounting practices uncovered the missing money, authorities said.