A former Lackawanna County insurance agent was arrested on Monday, June 11 and charged with stealing more than $50,000 in insurance policy premiums, which he allegedly converted for his own use.
Attorney General Linda Kelly identified the defendant as Ronald Madajeski, 63, 800 Clay Ave., Scranton. Madajeski was a licensed insurance agent and owner of RMI Group located in Dickson City.
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According to the criminal complaint between 2010 and 2011, Madajeski allegedly collected more than $50,000 for insurance policy premiums from various businesses for a variety of related insurance policies such as liability insurance, workers compensation insurance and cargo insurance.
Kelly said that once Madajeski collected the money from his business clients he failed to forward the funds to the appropriate insurance underwriters and instead kept the monies for his personal use.
The charges state that Madajeski also allegedly altered documents issued by insurers, despite being unauthorized to make those adjustments. Kelly said that the alterations included increasing the premium cost of policies and directing the insured to make premium payments directly to Madajeski and not the insurer.
Kelly noted that Madajeski allegedly continued to solicit policies, quote insurance premiums and collect additional monies from businesses despite having his insurance agent license suspended by the Pennsylvania Department of Insurance in March 2011.
Madajeski was taken into custody on Tuesday, June 12 and is charged with eight counts of theft by deception, four counts of insurance fraud and one count of forgery.
Attorney General Kelly thanked the Pennsylvania Insurance Department for their assistance with the investigation.
The case will be prosecuted in Lackawanna County by Senior Deputy Attorney General Robert LaBar of the Attorney General’s Insurance Fraud Section.
