A man arrested in Swedesboro last week on insurance fraud charges in Arizona forged his insurance license and diverted more than $450,000 in payments from customers for his personal use, according to Arizona authorities.
Brian D. McFarland, 43, was arrested in Swedesboro. He is wanted on fraud and theft charges in Arizona. (Salem County Correctional Facility)
Brian D. McFarland, 43, also never issued actual policies to those he sold policies, authorities said.
McFarland was charged with 92 criminal counts involving fraud schemes, identity theft and theft.
He had been living in Swedesboro since 2015 and is originally from Salem County, a spokesman for the Gloucester County Prosecutor’s Office said.
The fraud began in 2005, according to the Arizona Department of Insurance, when McFarland allegedly forged his name on the Arizona insurance producer license of another agent with the same last name.
He worked under that phony license for Legends Environmental Insurance Services, LLC, investigators allege.
When that company merged with Insurance Office of America, Inc. in 2013, the new company checked backgrounds on all Legends employees.
They determined that McFarland’s license was forged and contacted state insurance fraud investigators, authorities said.
In 2014, the Arizona Department of Insurance Fraud Unit obtained search warrants for McFarland’s place of business and residence in Phoenix and Flagstaff, Arizona.
The investigation revealed that he allegedly set up fraudulent bank accounts under the Legends name without the company’s knowledge and diverted more than $450,000 in premium payments from 87 different commercial environmental companies located throughout the country.
No actual insurance policies were issued for the premiums paid by these companies, investigators said.
During the probe, McFarland moved out of Arizona and back to New Jersey.
On Sept. 12, he was charged with 92 criminal counts and a warrant was issued for his arrest.
McFarland waived an extradition hearing and agreed to return to Arizona. He remains in Salem County Correctional Facility pending his transfer.