Insurance broker fleeced clients
NORRISTOWN » A Limerick man faces court supervision under a special treatment program for veterans on charges he fleeced more than $88,000 from two clients while he worked as an insurance broker.
Stephen A. Strope, 69, of the first block of Joac Circle, was sentenced in Montgomery County Court to 13 years of probation after he pleaded guilty to charges of theft by deception in connection with incidents that occurred between November 2009 and April 2015 while he provided services for clients in West Norriton and East Norriton. Strope also must pay a total of $88,433 in restitution to the two clients during the course of his supervision.
“He admitted that he had taken
money that belonged to the clients,” said defense lawyer Gregory Nester, explaining the nature of Strope’s guilty plea. “He made substantial payments already toward restitution. Mr. Strope wants nothing more than to get the victims paid back what was taken from them.
“He is so overwhelmed with regret at what he put these victims through. He personally feels terrible for these victims and that’s why he’s been making significant restitution payments early in the process,” Nester added.
Under a court order Strope must make a payment of $500 a month to pay toward the outstanding restitution. Once full restitution is made, Strope’s probationary period could be reduced, according to court papers.
Assistant District Attorney Scott Frame said prosecutors did everything to get as much money as possible returned to the victims. Frame said if Strope fails to make any monthly payment prosecutors will return to the judge to seek further sanctions, which could include jail time.
“Getting the money back for these victims was our number one priority,” Frame said.
Judge Todd D. Eisenberg also accepted Strope into the county’s Veterans’ Treatment Court. Established in April 2011, the specialty treatment court addresses the needs of veterans cycling through the court and prison system.
“He meets the criteria for veterans’ court. He has something that can be treated through veterans’ court which is just a terrific program,” said Nester, who was assisted in the case by defense lawyer James Flood.
The specialty court has the goals of enhancing public safety and reducing recidivism rates among veterans who are charged with crimes. Under the program, veterans are connected with community treatment services through the U.S. Department of Veterans Affairs while receiving appropriate dispositions to their criminal charges.
The program represents a collaboration of officials from the courts, the jail, the district attorney’s office, the public defender’s office, community-based treatment providers and Veterans Affairs.
To be eligible, a veteran must suffer from traumatic brain injury, post-traumatic stress disorder, military sexual trauma or psychological or substance abuse problems that require treatment and which contributed to their crimes.
Eligible offenders must agree to follow a court approved treatment plan and routinely meet with probation officials and the judge. When offenders are released from the court or prison system, Veterans Affairs officials are available to assist them.
With the charges, prosecutors alleged Strope fleeced a West Norriton couple out of more than $34,000 by collecting money for a nonexistent insurance policy.
An investigation began in April 2015 when the West Norriton couple contacted township police to report their suspicions that they were fleeced by Strope. The couple told police they signed a contract with Strope in September 2012 to invest their money in a flexible payment multi-funded deferred annuity with American Equity Investment Life Insurance Company, according to the criminal complaint.
The victims gave Strope two checks totaling more than $30,000 on Sept. 16, 2012, and Strope provided two contract numbers for their newly formed accounts, according to the arrest affidavit filed by West Norriton Detective Sgt. Michael McGettigan.
In February 2015, the victims contacted Strope to obtain an account balance on their investment.
“Strope provided them with a statement that appeared to be fraudulent,” McGettigan alleged.
When the victims contacted American Equity Investment Life Insurance Company they learned that the two accounts did not exist, according to prosecutors. During the investigation, detectives obtained bank records indicating Strope had deposited the victims’ checks into his personal account.
When Strope was interviewed by authorities he mentioned that he had “poor record keeping habits and was unable to locate the policy in question” and that the policy provided to the victims “did not appear to be real,” according to the arrest affidavit.
A review of Strope’s bank account showed that Strope did not use the funds provided by the victims to pay the premium for a policy through American Equity Investment Life Insurance Company, court documents alleged.
In October 2016, a second woman contacted East Norriton police to report she was defrauded by Strope during an investment arrangement that began in November 2009. When the woman’s family experienced some financial hard times in 2012 she requested some of her money be withdrawn from the investments Strope reportedly made on her behalf, according to court documents filed by East Norriton Detective Anthony Caso.
While Strope sent some funds to the victim there was about $54,130 unaccounted for, according to court documents.