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A former Dickson City, Pa., insurance agent was sent to Lackawanna County Prison for overcharging his clients for premiums, failing to pay the amount due and pocketing their cash...
Feb. 12--A former Dickson City insurance agent was sent to Lackawanna County Prison on Tuesday for overcharging his clients for premiums, failing to pay the amount due and pocketing their cash.
Ronald Madajeski, who owned RMI Group in the borough before his license was revoked in December by the state Insurance Department, was sentenced by Lackawanna County Judge Michael J. Barrasse to 11 1/2 to 23 months in prison. He was also ordered to serve 10 years of probation and is prohibited from engaging in business and finance again.
Mr. Madajeski, 63, of Scranton, collected more than $50,000 from various businesses between 2010 and 2011 for a range of policy types, including liability insurance and workers' compensation, according to state prosecutors who filed charges against him in June.
Instead of paying the premiums, he pocketed the cash, prosecutors said.
Before Judge Barasse issued his sentence, it was noted that Mr. Madajeski had already paid $159,258 in restitution. Before he was escorted out of the courtroom by sheriff's deputies, Mr. Madajeski told the judge he deeply regrets his actions.
Prosecutors claimed Mr. Madajeski altered documents issued by insurers. The alterations included hiking the premium cost of the policies and directing his customers to make the premium payments to him rather than the insurance companies, state prosecutors said.
His scheme unraveled in February 2011, after Lake Ariel trucking company owner Jason Barry of Jason Barry Trucking Co. Inc. filed a complaint with the state Insurance Department claiming Mr. Madajeski failed to secure his insurance policies, according to arrest papers.
His insurance license was suspended and the case was referred to the attorney general's office.
In September, he pleaded guilty to four felonies including theft by deception and forgery.
Contact the writer: smcconnell@ timesshamrock.com @smcconnellTT on Twitter
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