A Westchester County insurance agent was arrested Tuesday for allegedly taking $62,000 of commissions on insurance that didn’t exist, according to a state release.
Norman J. Michaels Jr., 61, is accused of stealing commissions from MVP Health Care of Schenectady by the improper enrollment of individuals into plans offered through the Otsego County Chamber of Commerce. The policies were allegedly sold downstate because they’re cheaper, but the people were generally not eligible for the plans.
Michaels is believed to have conspired with Robert Robinson, former president of the Otsego chamber, who is suspected of creating a membership category in the chamber so downstate residents could enroll in their plan. Robinson was arrested in 2011 and is waiting court actions on charges of insurance fraud, grand larceny and other crimes.
The scheme was initially discovered after MVP detected a spike in new enrollments, especially downstate.