Former Northridge Insurance Executive Sentenced to Prison for Fraud Scheme

Introduction to the Case

A former Northridge resident was sentenced Monday to more than four years in federal prison for defrauding a lender out of $3.7 million by submitting bogus applications for fine art insurance policies for commercial clients, but instead using the money for herself.

Tonja Van Roy, 59, who formerly operated a Northridge-based insurance agency, was sentenced in downtown Los Angeles by U.S. District Judge Stephen V. Wilson, who also ordered her to pay $1.88 million in restitution, according to the U.S. Attorney’s Office.

The Fraud Scheme

Van Roy pleaded guilty in January to one count of wire fraud. According to court documents, Van Roy owned and ran Pegasus Insurance, a company specializing in insurance policies covering art collections. From January 2021 to December 2023, Van Roy created and submitted dozens of fraudulent finance agreements to AFCO Credit Corp., an Illinois-based provider of insurance premium finance, purportedly to finance insurance policies she claimed to have sold to art galleries, court papers show.

Details of the Fraud

Van Roy made up the insurance policy numbers she used and forged the electronic signatures for fictitious clients. She used the borrowed money to fund her lifestyle, which included payments on dozens of credit cards. According to the U.S. Attorney’s Office, when the loans from AFCO came due, Van Roy submitted additional fraudulent finance agreements to AFCO, and used the proceeds from the new loans to make it appear as though the old loans had been repaid.

Related Cases

Other cases of fraud and theft have been reported in the area, including the theft of 85 koi from a Yucaipa restaurant pond, a handcuffed woman in Raiders gear stealing an LAPD SUV, a San Fernando Valley man admitting to laundering millions of dollars obtained in a Medicare fraud scheme, 7 individuals charged in a $100 million jewelry heist from a Brinks truck, and a Spectrum outage affecting parts of LA and Ventura counties after wires were cut by at least one suspect.

Conclusion

The case of Tonja Van Roy serves as a reminder of the importance of integrity and honesty in business dealings. The consequences of fraud can be severe, resulting in significant financial losses and damage to one’s reputation. It is essential for individuals and businesses to prioritize ethical behavior and comply with laws and regulations to maintain trust and avoid legal repercussions.

FAQs

• Q: What was the nature of Tonja Van Roy’s fraud scheme?
  A: Van Roy submitted bogus applications for fine art insurance policies, forging client signatures and policy numbers, and used the borrowed money for personal expenses.
• Q: How much was Van Roy sentenced to pay in restitution?
  A: Van Roy was ordered to pay $1.88 million in restitution.
• Q: What is the sentence imposed on Van Roy?
  A: Van Roy was sentenced to more than four years in federal prison.
• Q: Are there other similar cases of fraud reported in the area?
  A: Yes, there have been reports of other fraud cases and thefts in the region, including Medicare fraud, jewelry heists, and property theft.