District Attorney

Posted on: October 5, 2015

Jericho Broker Pleads Guilty to Stealing More Than $800K in Insurance Premiums and Other Funds

Jericho Broker Pleads Guilty to Stealing More Than 800K dollars in Insurance Premiums and Other Funds

Joseph Koch, 57, spent money on country clubs, gambling, and Mercedes Benz payments

MINEOLA, N.Y. – Acting Nassau County District Attorney Madeline Singas announced today that a Jericho insurance broker pleaded guilty for stealing insurance premiums instead of forwarding them to insurance companies on behalf of his clients.

Joseph Koch, 57, pleaded guilty today before Acting Supreme Court Justice Helene Gugerty to Grand Larceny in the 2nd Degree (a C felony) and Scheme to Defraud in the 1st Degree (an E felony). He is due back in court on December 8. The defendant has made partial restitution to date of more than $472,000.

“Clients trusted the defendant, but he betrayed that trust and used the money to fund a lavish lifestyle,” Acting DA Singas said. “Because of the defendant’s theft, his clients were left without coverage and were exposed to serious liability issues. Thanks to the hard work of our prosecutors and the State Department of Financial Services, the defendant will be held accountable for harming innocent people seeking insurance.”

The case was referred to the District Attorney’s office by the New York State Department of Financial Services. Koch was arrested as the result of a joint investigation by the two agencies.

Acting DA Singas said that between May 8, 2009 and March 31, 2010, Koch, as president of The Louis Koch Insurance Agencies, Inc. in Baldwin, was paid $648,074.13 in insurance premiums from a Queens commercial property management company which were not forwarded to several insurance companies for which he was acting as agent.

On June 26, 2009, Koch stole $10,572.56 from the same Queens commercial property management company as a premium payment made by the company for an insurance policy Koch never purchased on their behalf.

Koch also failed to forward insurance premium payments made by other clients to insurance companies and insurance brokers, including $51,244.50 to a Cincinnati-based insurance company; $20,000 to a Woodbridge, New Jersey-based insurance broker; and $2,525.40 to a Fairview Park, Ohio-based insurance broker.

Between March 30, 2005, and July 31, 2012, Koch stole $97,546.94 from a Florida woman, consisting of funds which were given to Koch for her benefit by three of her nephews and a niece to be paid out to the woman in a certain amount each month until the funds were exhausted.

The defendant was arrested by DA investigators and charged on Aug. 30, 2012. In the course of Koch’s schemes, he stole a total of $829,963.53.

DA investigators revealed that Koch spent stolen money on personal expenses, such as purchases at retail stores, country clubs, gambling, Mercedes Benz car payments, income taxes, and home mortgage payments.

Assistant District Attorney Peter Mancuso of Acting DA Singas’ Government and Consumer Frauds Bureau is prosecuting the case. Koch is represented by Anthony Capetola, Esq.

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