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Post date: January 5 2016

A.G. Schneiderman Announces Arrest and Indictment of Rochester Couple Charged with Stealing From Insurance Brokerage Clients

Gary And Bonnie Gubiotti Accused Of Stealing Over $150K By Falsely Inflating Insurance Premiums, Failing To Remit Refunds And Forging Finance Agreements

Schneiderman: Business Owners Who Exploit Clients For Personal Gain Will Be Held Accountable

ROCHESTER – Attorney General Eric T. Schneiderman today announced the arrest of Gary Gubiotti and Bonnie Gubiotti, both 67, of Rochester, for an alleged scheme to defraud clients of their Rochester insurance brokerage.  From 2011 to 2014, the Gubiottis stole from agency clients by falsely inflating insurance premiums, failing to remit refunds, and forging finance agreements.  Gary Gubiotti, Bonnie Gubiotti and their brokerage firm, the Gubiotti Agency, Inc., are charged in an 11-count indictment with Grand Larceny, Criminal Possession of a Forged Instrument, Insurance Fraud and Scheme to Defraud, and if convicted face up to 15 years in prison.

“New Yorkers trust their insurance brokers to provide them with honest advice and coverage in the event of an emergency,” said Attorney General Schneiderman. “Violating that trust to line one’s own pockets is truly reprehensible. Today’s arrests send the message that business owners who exploit their clients for personal gain will be held accountable.”

According to the indictment and statements made by the prosecutor at arraignment, the Guibottis scheme included allegedly submitting forged applications to a finance company in the name of one of their corporate clients, thereby fraudulently obtaining thousands of dollars.  The Gubiottis also allegedly failed to make payments on that client’s insurance policies, instead pocketing over $47,000 in premiums for themselves.  The Gubiottis also allegedly falsely inflated a second client’s insurance premiums and kept over $108,000 in over-payments, and also failed to remit an insurance refund of over $12,000.  The prosecutor further stated that the Gubiottis allegedly perpetuated their scheme to defraud by forging client signatures on policy and financing applications. 

The Attorney General’s 11-count indictment charges the Gubiotti Agency, Inc., Gary Gubiotti and Bonnie Gubiotti with one count of Grand Larceny in the Second Degree (a class C felony), two counts of Grand Larceny in the Third Degree (a class D felony), five counts of Criminal Possession of a Forged Instrument in the Second Degree (a class D felony), one count of Insurance Fraud in the Second Degree (a class C felony), one count of Insurance Fraud in the Fourth Degree (a class E felony) and one count of Scheme to Defraud in the First Degree (a class E felony). 

Gary and Bonnie Gubiotti were arrested today and arraigned before the Honorable Judge Christopher Ciaccio in Monroe County Court. If convicted of all charges, the Gubiottis face a maximum sentence of up to 15 years in prison.

The charges against the Gubiotti Agency and the Gubiottis are allegations and they are presumed innocent until proven guilty in a court of law.

The Attorney General’s investigation remains ongoing.

The Attorney General thanks the New York State Police, the New York State Insurance Fund, Marketscout Corporation, Lancer Insurance Company, Superior Finance Plan, LLC, and QBE Insurance Corporation for their assistance in the investigation.

The case is being prosecuted by Assistant Attorney General Cydney Kelly with the assistance of Legal Analyst Robert Vanwey of the Criminal Enforcement and Financial Crimes Bureau. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chief Stephanie Swenton. The Attorney General's Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.

The investigation was handled by Investigator Joel Cordone, Investigator Richard Doyle and Deputy Chief of Investigations Antoine Karam. The Investigations Division is led by Chief Dominick Zarrella.