Rachel Sacharow 609-984-1936

TRENTON - Division of Criminal Justice Director Vaughn L. McKoy announced that a Monmouth County insurance agent was ordered to pay more than $43,600 in restitution after pleading guilty to stealing insurance sales commissions to which he was not entitled.

According to Insurance Fraud Prosecutor Greta Gooden-Brown, Ralph Malek, aka Raafat Abdel Malek, 29, Camelot Drive, Farmingdale, Monmouth County, was ordered by Monmouth County Superior Court Judge Bette E. Uhrmacher to pay $43,648 in restitution and to serve five years probation. Malek was sentenced after pleading guilty to a criminal Accusation filed by the Division of Criminal Justice, charging him with theft by deception (3rd degree).

At the Oct. 1 guilty plea, Malek admitted that between Aug. 23, 1999 and July 5, 2000, to stealing $43,648 from the Baltimore, MD, Fidelity and Guaranty Life Insurance Company. Malek admitted that he submitted a fraudulent annuity insurance application and a fraudulent $87,500 check drawn on the account of Contaldo’s Specialties, a business Malek formerly owned, to the Fidelity and Guaranty Life Insurance Company. As a result of the transaction, Fidelity and Guaranty Life Insurance advanced Malek $7,875 in insurance agent commissions.

Additionally, Malek admitted to using the same scheme to submit a second fraudulent annuity application to Fidelity and Guaranty Life Insurance using the name of a second fictitious applicant. Malek paid for the insurance premium with a fraudulent $436,487 check drafted on the business account of L.R. Food Deli, Inc. - another business formerly operated by Malek. That check, along with a replacement check from a third business formerly operated by Malek, were fraudulent. Fidelity and Guaranty Life Insurance advanced Malek insurance agent sales commissions of $35,773. In total, Malek stole $43,648 from Fidelity and Guaranty Life Insurance Company by issuing worthless insurance premium checks and insurance applications containing fraudulent information.

State Investigator Matthew Armstrong and Deputy Attorney General Nicole D. Rizzolo were assigned to the investigation. DAG Rizzolo represented the Division of Criminal Justice - Office of Insurance Fraud Prosecutor at the sentencing. The case was referred to the Division of Criminal Justice - Office of Insurance Fraud Prosecutor by Stuart Allan & Associates, Inc, Tucson, Arizona, on behalf of its client, Fidelity & Guaranty Life Insurance Company.

Noting that some important cases have begun with anonymous tips from the public, Insurance Fraud Prosecutor Gooden-Brown encouraged anyone with information about insurance fraud to contact the Division of Criminal Justice - Office of Insurance Fraud Prosecutor's toll-free hotline at 1-877-55-FRAUD, or to visit the insurance fraud web site at www.NJInsurancefraud.org.

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