HARRISBURG – Attorney General Tom Corbett has announced that agents from the Attorney General’s Elder Abuse Unit and Insurance Fraud Section have filed criminal charges against a Lebanon County insurance agent accused of stealing more than $80,000 from older consumers across Central Pennsylvania by selling them fictitious investments.
Corbett identified the defendant as Scott Michael Powell, 49, 36 North Grant St., Palmyra. Powell allegedly conducted business as SMP financial Services, of Palmyra.
Corbett said that Powell allegedly targeted older consumers, including seniors that he contacted while presenting an insurance and investment program at a retirement community in Lancaster County. Powell allegedly sold bogus “Certificates of Deposit” (CD’s) and non-existent mutual fund investments to at least 11 different victims from Lancaster, Lebanon, Hershey, Harrisburg, Mechanicsburg and other Central Pennsylvania communities – including a 97-year old woman from Lancaster who believed she has “invested” $24,000 with Powell.
“This scheme targeted seniors across central Pennsylvania, selling thousands of dollars worth of fictitious investments to a list of unsuspecting victims in their seventies, eighties and nineties,” Corbett said. “These victims trusted Mr. Powell with their money and their financial futures, only to learn that these ‘investments’ were allegedly part of an elaborate plot to steal clients’ money for personal use.”
Corbett said that prior to April 2008 Powell was a licensed insurance agent in Pennsylvania, but was never registered or licensed to sell securities or other investment products. Powell allegedly sold legitimate insurance policies to some consumers, while also marketing his non-existent CD’s and mutual funds.
According to the criminal complaint, Powell attempted to conceal the fraudulent nature of these investments by providing victims with fabricated statements that showed “interest” and “dividends” being earned. Rather than invest consumers’ money, Powell allegedly diverted at least $83,000 for his own personal use.
“With one of the largest senior populations in the country, financial abuse is a serious threat to older Pennsylvanians,” Corbett said. “The Attorney General’s Elder Abuse Unit is dedicated to investigating and prosecuting criminals who exploit our seniors for their own personal gain.”
Powell was taken into custody today in Lancaster County by agents from the Attorney General’s Elder Abuse Unit and Insurance Fraud Section.
Powell is charged with one count of participating in a corrupt organization, a first-degree felony punishable by up to 20 years in prison and a $25,000 fine.
Additionally, Powell is charged with eleven counts of theft by deception, eleven counts of theft by failure to make required disposition of funds and eleven counts of insurance fraud, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines.
Powell is also charged with eleven counts of forgery, a second-degree felony punishable by up to ten years in prison and a $25,000 fine.
Powell was preliminarily arraigned before Lancaster Magisterial District Judge David Miller and released on $25,000 unsecured bail. A preliminary hearing is scheduled for November 7th, at 9 a.m., before Magisterial District Judge Miller.
The case will be prosecuted in Lancaster County by Senior Deputy Attorney General Gregg D. Shore of the Attorney General’s Insurance Fraud Section.
Corbett thanked the Lancaster County District Attorney’s Office and Pennsylvania Insurance Department for their cooperation and assistance with this investigation.
Corbett noted that cases of elder financial abuse, of other forms of fraud targeted at senior citizens, can be reported by calling the Attorney General’s toll-free Elder Abuse Hotline at 1-866-623-2137.
