Westfield Resident Charged With Theft of $148,000

Attorney General Jeffrey S. Chiesa announced that Virginia Larsen, 66, of Westfield, a Union County insurance agent was indicted today for allegedly accepting insurance premium money and failing to remit it to the insurance company. 

Larsen was charged with theft by failure to make required disposition of property received and two counts of misapplication of entrusted property and property of government or financial institution, all in the second degree.

The state grand jury indictment alleges that between July 29 and August 31, 2009, Larsen, an insurance agent and an officer of Larsen Global Marine, a financial institution, obtained $148,739.70 in insurance premiums that she was obligated to remit to RLI, an insurance company, but failed to make the required payment to RLI. The indictment alleges that Larsen was entrusted with the premium money as a fiduciary for RLI, but kept the funds for her own use, knowing that it was unlawful and involved substantial risk of loss to RLI.    

Deputy Attorney General Steven Bennet and Detectives Megan Flanagan and Nicole Eiker were assigned to the investigation.  DAG Bennet presented the case to the state grand jury. Acting Insurance Fraud Prosecutor Ronald Chillemi thanked RLI for referring the matter to the Office of Insurance Fraud Prosecutor.

The indictment is merely an accusation and the defendant is presumed innocent until proven guilty. Under state law, crimes of the second degree carry a maximum punishment of 10 years in state prison and a criminal fine of $150,000. 

Acting Insurance Fraud Prosecutor Ronald Chillemi noted that some important cases have started with anonymous tips: “People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org.” State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.