Former Insurance Agent Accused of Grand Theft

A former Palm Harbor insurance agent faces a string of felony grand theft charges as a result of a state probe into his business transactions with senior citizens.

Neal Seth Smalbach, 49, is charged with six counts of felony grand theft. Florida Chief Financial Officer Jeff Atwater announced Smalbach's arrest Wednesday.

Smalbach is accused of misrepresenting details of investment products to multiple senior clients for personal gain. The seniors invested $4.6 million in unsuitable products and wound up losing more than $2 million, according to investigators with the Department of Financial Services Division of Insurance Fraud.

"Florida's seniors have worked hard for many years to earn their money and prepare for retirement," said Atwater. "Criminals who choose to prey on the elderly for their own financial gain will be caught and they will be brought to justice."

The Division of Agent and Agency Services also conducted an investigation and says Smalbach falsified two applications for insurance. Smalbach surrendered his licenses and is permanently banned from practicing in the insurance industry as part of a settlement with the Division of Agent and Agency Services.

A check of Pinellas County property records found that Smalbach owns a 4,522 sq. ft. home with a current value of $337,050 in East Lake's Lansbrook community which is located on Lake Tarpon. He also owns an 825 sq. ft. condo in Innisbrook.

As of Thursday, May 17, Smalbach is still at the Pinellas County Jail and has not posted the $250,000 bond.