Nonprofit Among Palermo's Victims

A Huntley nonprofit is a victim of an insurance broker charged with theft, fraud and deceptive practices, source said Wednesday.

The nonprofit paid Russell Palermo, owner of Palermo Insurance Agency in Huntley, the premium on a policy, but officials later found out he did not buy the coverage, a source said.

Palermo, 46, 11313 Douglas Ave., faces 29 charges ranging from theft to forgery to deceptive practices. Huntley police have an active warrant for the Huntley man. His whereabouts are unknown.

He was charged following a six-month investigation that started after Huntley police received numerous complaints alleging fraud. The victims told police Palermo had been charging them insurance premiums even though no policy was in place, police said. He reportedly collected money from one client since 2006 even though no policy existed, police said.

Palermo reportedly scammed the nonprofit the same way, sources said. The nonprofit was looking to renew its policy and turned to Palermo. The nonprofit held several community events never knowing it did not have insurance in case something happened, the source said.

Pam Fender learned the hard way how Palermo operated.

Palermo’s agency handled Fender’s auto insurance. She had no reason to question his abilities, she said. One day she went online to get a copy of her insurance card.

The premium on the policy was late. Fender had never been notified about it. She paid the premium then asked Palermo to change her address so she would get the bill. He never did.

Later, Fender learned the policy lapsed. She hadn’t had insurance for three months, she said.

“I’m embarrassed to say it but I didn’t know I didn’t have insurance,” Fender said. “I didn’t follow up, I didn’t pay close enough attention. I’m embarrassed about that…I didn’t have insurance for three months. I drove a brand new car in a parade. Can you image what would have happened if I had a problem?”

Fender was not involved in the fraud case, but she called the incident “gross mismanagement.”

While she said she has an excellent driving record, she now pays a lot in car insurance because she didn’t have a policy in place for more than 30 days. The lapse in coverage makes a person a high risk.

“I thought I had an agent looking out for me,” Fender said.

Huntley police continue seeking others in the community who may have been victims.