Acting Attorney General Robert Lougy and the Office of the Insurance Fraud Prosecutor (OIFP) announced that a former insurance salesman from Monmouth County has been charged with theft by deception and other offenses for allegedly stealing the $305,000 life savings of a 90-year-old family friend, leaving elderly woman destitute and on public assistance.
Robert Berlin, 46, of Englishtown, whose insurance license was revoked for defrauding elderly clients in 2008, was indicted by a state grand jury for allegedly raiding the annuity funds and selling off stocks belonging to an elderly Tom’s River resident who had been his client.
According to prosecutors, after losing his license to sell insurance, Berlin opened Retro Fitness Gym in Wallington but continued to “manage” the assets of the elderly woman whom he had sold annuities to years before. After the woman’s daughter died in 2010 Berlin helped extended family place the woman in a private assisted living facility and continued to oversee her financial assets.
According to the indictment, Berlin used his position as financial adviser to systematically liquidate nearly $195,000 from the woman’s annuity funds and sell nearly $111,000 worth of her stocks over a four-year period, pocketing the money for himself.
Berlin was also indicted for allegedly using the woman’s bankcard for at least $7,000 in personal purchases, including airline tickets, pet care, and gymnastic classes and after-school activities for his children. The indictment also charges him with passing a $13,000 bad check to pay the assisted living facility where the woman resided before she was evicted for non-payment.
The indictment also charges Berlin with bilking a Toms River couple out of $50,000 they loaned him for renovations at his health club. Berlin, who met the couple through the elderly woman, allegedly obtained the loan under false pretenses. He never had any intention of using the money for gym improvements, and never repaid the loan with interest, as promised, prosecutors said.
The indictment charges Berlin with:
· Two counts of theft by unlawful taking (2nd and 3rd degree)
· Two counts of theft by deception (2nd and 3rd degree)
· Theft by failure to make required dispensation of property received (2nd degree)
· Passing bad checks (3rd degree)
· Fraudulent Use of Credit Cards (3rd degree)
Second-degree crimes carry a sentence of five to 10 years in state prison and a criminal fine of up to $150,000; third-degree crimes carry a sentence of three to five years in state prison and a criminal fine of up to $15,000.
People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.