Jericho man arraigned in insurance-premium scam accused of failing to repay $150G loan

A former president of a Baldwin insurance agency, arraigned Monday on a grand jury indictment charging him with stealing more than $800,000 from clients, was arrested a day later, accused of failing to repay a personal loan of $150,000, authorities said.

Joseph Koch, 56, of 31 Holiday Pond Rd., Jericho, was arraigned Wednesday at First District Court in Hempstead on a new charge of second-degree grand larceny.

Rockville Centre attorney Stacy Eves entered a not-guilty plea for Koch, who was released on bail, which was set by District Court Judge Joy Watson at $15,000 bond or $5,000.

"We intend to vigorously fight this allegation," Eves said.

Koch's next court date is Friday.

He was arrested at his residence, police said, after another man reported Koch failed to repay $150,000 that he borrowed in December 2011.

Koch told the victim he'd repay him in full in March 2012, but police said when March came, no attempt was made to pay back the money.

In October 2012, Koch gave the victim promissory notes that stated he'd pay back the loan with interest. However, five checks representing repayment toward the loan were returned to the victim because of insufficient funds, police said.

On Monday, Koch was arraigned before Nassau County Court Judge Anthony Paradiso on additional grand jury charges, including two counts of second-degree grand larceny, third-degree grand larceny and fourth-degree grand larceny, Nassau prosecutors said.

He originally was arrested Aug. 30, 2012, by investigators from District Attorney Kathleen Rice's office and charged with three counts of second-degree grand larceny, third-degree grand larceny and first-degree scheme to defraud, officials said.

Koch faces 5 to 15 years in prison if convicted of the top charge.

Koch collected money from clients and then failed to pay insurance premiums on policies they had purchased, prosecutors said.

Instead, he spent the money on personal expenses, including purchases at retail stores and country clubs, gambling, Mercedes-Benz payments, income taxes and home mortgage payments, prosecutors said.

Paradiso on Monday continued bail at $100,000 bond or $50,000 cash in that case, and Koch was free on bond and is due back in court Dec. 2, online court records show.

With Darran Simon