Insurance Men Accused of Embezzlement

MANHATTAN (CN) - One insurance man was arrested and police are looking for a co-worker, both accused of embezzling $2.6 million from their employer.

James J. Shea was arrested Tuesday on conspiracy and wire fraud charges. Eugene Fallon remains at large, the U.S. Attorney's Office said.

Shea is accused of forging a supervisor's signature to authorize payments to bogus consulting companies run by Fallon. The indictment does not reveal the name of the insurance company, but insurance industry publications said it is a U.S. subsidiary of Australia-based QBE.

Fallon kicked most of the embezzled money back to Shea, who spent it on "a multi-million dollar house and luxury automobiles," the U.S. Attorney's Office said.

If convicted, Shea, 49, of Paramus, N.J., and Fallon, 51, of Nanuet, N.Y., could be sentenced to up to 20 years in federal prison for each count, plus restitution of twice the money involved.

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