Feds charge central Pa. insurance agent in $1.5m investment fraud

By Matt Miller | mmiller@pennlive.com


Federal authorities have accused a central Pennsylvania insurance agent of running a decades-long investment scam that conned 30 clients out of more than $1.5 million.

The scheme involved Dennis F. Wright's misuse of his credentials as an agent for the AXA Equitable Life insurance Company, according to a securities fraud charge filed Tuesday in U.S. Middle District Court.

The U.S. Courthouse in HarrisburgMatt Miller, PennLive Investigators claim that from sometime in the mid-1990s until June 2012 Wright defrauded clients in Mifflin County by diverting money they had given to invest in what he told them were "managed funds."

Instead, Wright deposited the money in his own business account, then sent his clients phony investment account statements, the charges state. He used their money to pay his own business and living expenses, investigators said.

Records show Wright has a tentative agreement with the U.S. Attorney's Office to plead guilty to the securities fraud count, which carries a penalty of up to 25 years in prison. the proposed deal also requires him to agree to pay full restitution.

The plea agreement would not be final unless it is adopted by Senior Judge Sylvia H. Rambo.




Source: Pennlive