Insurance broker pleads guilty in premium scheme

A former Ronkonkoma insurance broker has pleaded guilty to mail fraud in connection with a $7-million scheme to pocket premiums instead of passing them on to insurance carriers.

Arthur Bielli, 42, of West Islip, operated two insurance companies -- Global Insurance Brokerage and Cross Country Insurance Brokerage, both of Ronkonkoma. He pleaded guilty to one count of fraud in U.S. District Court in Central Islip, according to Robert Nardoza, a spokesman for Eastern District U.S. Attorney Loretta Lynch.

As part of his guilty plea Tuesday before Magistrate Kathleen Tomlinson, Bielli also agreed to pay restitution, the amount of which will be determined later.

Bielli victimized more than 20 companies in the metropolitan area between 2001 and 2004, officials said. His clients were in businesses requiring costly vehicle-insurance premiums -- such as tow-truck operators and trucking companies -- that could run to several hundred thousand dollars a year.

At least one Queens tow-truck company went out of business in 2004 after it learned its insurance policy had been canceled for non-payment, a lawyer representing several of the companies has said. The Queens company lost its city license to tow abandoned cars, the lawyer said.

On several occasions when a tow-trucking company would make a damage claim, Bielli would pay the claim amount himself to avoid detection, according to court papers.

Bielli's attorney could not be reached immediately for comment. Federal prosecutors Carrie Capwell and Charles Rose declined to comment.

Bielli faces up to 20 years in prison when he is sentenced.