Montgomery County insurance agents accused of stealing more than $1 million

HARRISBURG – Attorney General Tom Corbett announced that agents from the Attorney General’s Insurance Fraud Section have filed additional criminal charges against two insurance agents from Montgomery County accused of stealing in excess of $1 million that was supposed to pay for workers’ compensation insurance, liability coverage and other insurance policies for various businesses, public school district and other organizations.

Corbett identified the defendants as Kevin John Pickell, 53, 1260 Normandy Drive, Blue Bell, and his cousin, Robert Francis Pickell, 44, 2007 Windsor Drive, Collegeville. Both men were partners in the now-defunct KDN Lanchester Corporation (KDN), an insurance brokerage business located in Spring Township, Berks County.

According to the new charges, Kevin and Robert Pickell allegedly used more than $163,000 in insurance premium payments for unrelated business expenses and to purchase personal items. The alleged victims of these latest thefts include businesses from New Jersey and New York and a labor organization from Philadelphia.

Corbett said the criminal charges filed this week against Kevin and Robert Pickell are in addition to the alleged theft of more than $1 million in insurance premium and commission payments collected from six public school districts in Berks County, which prompted the initial arrest of the Pickells in January 2010.
“Instead of purchasing the insurance policies that clients paid them for, the Pickells allegedly took the money for their own use,” Corbett said, “Writing checks for thousands of dollars in personal items; making large payments to themselves and other family members; spending large amounts on luxury cars for themselves and their spouses and having expensive wine and other items delivered to their business.”

Corbett said the charges filed this week against the Pickells were the result of additional information about alleged thefts that was discovered following their arrest in January.

The new charges against both Kevin J. Pickell and Robert F. Pickell include two counts each of participating in a corrupt organization, both first-degree felonies punishable by up to 20 years in prison and $25,000 fines. They are also each charged with three counts of theft by failure to make required disposition of funds and one count of criminal conspiracy to commit theft by failure to make required disposition of funds, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines.

The defendants are scheduled for a preliminary hearing, scheduled for October 19th, at 10:30 a.m., before Wernersville Magisterial District Judge Ann L. Young.

The defendants will be prosecuted in Berks County by Deputy Attorney General John T. Dickinson of the Attorney General’s Insurance Fraud Section.

The earlier charges against Kevin and Robert Pickell have all been bound over for court and both defendants are awaiting trial in Berks County Court of Common Pleas.

Kevin J. Pickell was charged in January 2010 with two counts of participating in a corrupt organization, both first-degree felonies punishable by up to 20 years in prison and $25,000 fines; along with six counts of theft by failure to make required disposition of funds, one count of criminal conspiracy and one count of insurance fraud, all third-degree felonies each punishable by up to seven years in prison and $15,000 fines.

Kevin J. Pickell is also charged with one count of possession of a controlled substance, a misdemeanor punishable by up to one year in prison and a $5,000 fine.

Robert F. Pickell is charged with two counts of participating in a corrupt organization, both first-degree felonies which are each punishable by up to 20 years in prison and $25,000 fines; along with six counts of theft by failure to make required disposition of funds, one count of criminal conspiracy and one count of insurance fraud, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines. He is also charged with one count of possession with intent to deliver a controlled substance, a felony punishable by up to five years in prison and a $15,000 fine.
(A person charged with a crime is presumed innocent until proven guilty.)

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