Politics & Government
Santa Clara Broker Accused Of Stealing Nearly $1.5 Million From Trust Account
A Santa Clara insurance broker has been charged with fraud in connection with an alleged attempt to steal more than $1 million from a client
SAN JOSE - A Santa Clara insurance broker has been charged with wire and mail fraud in connection with an alleged attempt to steal more than $1 million from a client's trust account, Unites States Attorney Brian Stretch announced Wednesday.
Gary Thornhill, 63, is accused of using his position in a boutique insurance brokerage firm to withdraw funds from a widow's client trust account, prosecutors said.
Thornhill was a fiduciary responsible for the management and oversight of an account containing the proceeds of an insurance policy he created for a married couple years earlier, prosecutors said.
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Beginning in January of 2011, several years after the husband died, Thornhill allegedly transmitted written requests for funds to be drawn against the cash value of the widow's insurance policy, prosecutors said.
He then deposited the proceeds into an account he controlled. Prosecutors said Thornhill withdrew almost $1.5 million from the account.
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Thornhill was arrested Wednesday and was released on a $500,000 bond with conditions.
His next court appearance is scheduled for Monday.
He faces a maximum sentence of 20 years in prison for each charge and a fine of $250,000 or twice the gross gain or gross loss, plus restitution.
-Bay City News, image via ShutterStock
