A federal judge in New Jersey has sentenced a California man to 70 months in prison for conspiring to sell bogus liability insurance policies.
Ronald Allen of North Hollywood, Calif., was convicted in December following a seven-day jury trial.
Prosecutors say Allen conspired with Houston-based insurance agent Gilbert Morgan to sell commercial liability policies to bar and nightclub owners around the country, including in New Jersey.
The policies were issued by a fictitious company created by Allen and never paid any claims.
Prosecutors say the men collected nearly $700,000 in premiums. In addition to the prison term, Allen was ordered to pay full restitution.
Morgan previously pleaded guilty and is awaiting sentencing.
The Lords Insurance Blog 