The boss of a Salt Lake insurance executive, who was charged with bilking his company of nearly $1 million, also has been charged with fraud in connection with the investigation.
Randall D. Peck, 31, of Riverton, was charged last week with theft by deception and an alternative charge of communications fraud, both second-degree felonies. He is accused of devising a scheme to defraud New York Life insurance company of $32,000, according to documents filed in 3rd Circuit Court and police reports.In October, Keith Horrocks, 44, of West Jordan and Midway, Wasatch County, was charged with nine counts of forgery and one count of communications fraud in allegedly submitting forged and fake insurance applications to the company and then collecting more than $900,000 in commissions in less than one year.
Investigators said the salesman submitted up to 12,000 false applications and received commissions as high as $800 for each.
Peck was Horrocks' supervisor at New York Life. Peck is charged with dividing the applications that Horrocks submitted among other agents under his supervision so that each of the agents could reach a "Council" position - a position of honor in the company, the documents state.
Salt Lake police investigators said Peck's salary and commissions were based on the performance of his assigned agents. If all agents reached the "Council" level, his cash incentives then increased. An audit indicated that Peck received a $32,000 increase by sharing the applications with the other agents, according to a police report.
Peck told police that Horrocks came to him in November or December of 1989 and offered to share the applications with the other agents. Horrocks apparently gave Peck the applications, and forms were filled out to transfer the agents assigned to the accounts, the report stated.
Subsequently, Peck has been fired from New York Life. Six other employees who worked under his supervision and were accused of sharing the fraudulent documents have also been terminated, said deputy Salt Lake County Attorney Greg Skordas.
The general manager of the Utah general office of New York Life, Val Neuenswander, of Bountiful, was also terminated, Skordas said.
New York Life spokesman David Pomerantz would not say whether Neuenswander was fired as a result of the Horrocks investigation, but he said Neuenswander left the company after the investigation began - at the end of October or in November.
A trial date for Horrocks has not been set. Court records indicate a disposition may be reached, and his defense attorney will contact the court when and if that occurs.
Salt Lake police say they have arranged a date for Peck to surrender to the Salt Lake County Jail.