On Tuesday, August 22, 2017, a federal grand jury in Rockford, Illinois increased the number of fraud charges brought against a former insurance executive. 41-year-old Todd J. Fendler of Rockford was initially charged on February 28, 2017. At the time, the defendant was charged with a single count of mail fraud and one count of wire fraud. On Tuesday, the grand jury returned a superseding indictment charging Fendler with 19 counts of wire fraud and one count of mail fraud in connection with a scam to defraud former insurance clients.
The indictment accuses Fendler of defrauding more than one hundred clients of more than $800,000. According to the indictment, Fendler managed and operated a few insurance related businesses in Rockford. Surplus Market Solutions LLC, Northern Illinois Insurance Agency Inc., and Northern Underwriting Managers Inc. were all under Fendler’s care. According to the indictment, Fendler collected bank account information from individuals and businesses that had applied for insurance policies. Then, it is alleged that the information was used to withdraw money from those businesses and individuals without their consent.
The indictment suggests that Fendler used ACH and EFT withdrawals to take money from the accounts without the victim’s permission. The indictment accuses Fendler of producing fictitious checks supposedly issued by applicants and then depositing those checks into bank accounts he controlled. Each count in the indictment has a maximum penalty of twenty years in prison and a maximum fine of $250,000.
Arraignment on the superseding indictment will be scheduled for a later date.