Former Insurance Brokerage Company Employee Sentenced To Prison For Stealing Millions Of Dollars

NJTODAY.NET's online business directory

TRENTON – An employee of a former Morris County insurance brokerage company was sentenced to state prison today for stealing several million dollars entrusted to her employer, Attorney General Jeffrey S. Chiesa announced. These funds had been entrusted to the insurance brokerage for the purpose of purchasing insurance policies for small and medium-sized businesses in New Jersey and New York.

Kelly Roetto, 45, of Bedminster, was sentenced to seven years in state prison by Superior Court Judge Thomas V. Manahan in Morris County. Roetto agreed to never again obtain an insurance license in the State of New Jersey. The sentence was based on Roetto’s Nov. 8 guilty plea to an accusation charging her with second-degree theft by unlawful taking, second-degree issuing bad checks, and second-degree misconduct by a corporate official.

At the time of the crime, Roetto was the controller for a now-defunct insurance brokerage called the John A. Rocco Co., Inc. (JarCo), located in Florham Park. JarCo was in the business of obtaining insurance policies on behalf of small and medium-sized trucking, hauling, waste management, moving, and recycling businesses located in New Jersey and New York. As part of its operations, JarCo would arrange for these businesses to finance the cost of such insurance policies, and used its existing relationships with numerous premium finance companies for this purpose. In her capacity as the Controller for JarCo, Roetto was responsible for arranging this financing and for ensuring that the borrowed funds were forwarded from JarCo’s bank accounts to the insurance carriers or their respective agents.

In pleading guilty, Roetto admitted that between January 1, 2008 and May 28, 2010, she used her position as JarCo’s controller to steal between $3,800,000 and $5,000,000 of financed proceeds. The state’s investigation revealed that Roetto was able to perpetrate these offenses by capitalizing on the complexity of the premium finance transaction process using a combination of different schemes. For example, Roetto admitted that she knew that these finance companies sent financed proceeds to JarCo with the understanding that they would be used to purchase insurance policies on behalf of businesses seeking coverage. She further admitted that on numerous occasions she failed to send this money to the carriers and, instead, exercised unlawful control over such money by using it for a purpose other than its intended purpose. Roetto also admitted that she caused unauthorized finance agreements to be submitted to these finance companies and that she used the proceeds obtained in connection with these unauthorized agreements for unlawful purposes. In addition, Roetto admitted that she used her position to issue more than 200 bad checks totaling more than $2,000,000. These checks were drawn on many of JarCo’s bank accounts at not fewer than 10 banks.

Connect with NJTODAY.NET

Join NJTODAY.NET's free Email List to receive occasional updates delivered right to your email address!
Email for advertising information Send stuff to NJTODAY.NET Like Us On Facebook Follow Us On Twitter Download this week's issue of NJTODAY.NET

Leave a Reply