Pittston, Pa.-based independent agency Joyce, Jackman & Bell is working with a state bankruptcy court to acquire troubled Murray Insurance Agency.

The agency, located in Scranton, Pa., filed for bankruptcy as did its owner, Brian J. Murray, after the Pennsylvania Insurance Department assessed penalties in connection with misappropriation of client funds.

Andrew Bell, president of Joyce, Jackman & Bell, told the Scranton Times-Tribune his firm has made an offer for a percentage of the value of the firm and is awaiting a signature from the U.S. Bankruptcy Court for the Middle District of Pennsylvania.

Joyce, Jackman & Bell, founded in 1955, has five locations and 60 employees.

The final purchase price will be based on the value of the firm once the court reviews the business’ files. Bell told the newspaper that Murray’s “book of business is still somewhat intact” and that his firm is “buying basically the files and customer lists.”

A closing is scheduled for Oct. 23 in which the firm would create Joyce, Haggerty and Bell Insurance Group LLC to handle the assets of Murray Insurance Agency in Scranton. James J. Haggerty Jr. is a principal at the firm.

Pennsylvania regulators investigated Murray Insurance Agency after a former employee, Christine M. Oliver, surrendered her insurance license last year after signing a consent order stating she misappropriated $500,000 in client premiums.

Murray surrendered his license and was forced to sell his agency by the PID for failing to properly manage Oliver.

The state attorney general’s office recently raided Murray’s Scranton office, as well as Oliver’s home, as part of an ongoing investigation into possible insurance fraud, the Times-Tribune reported, and Lackawanna County District Attorney Andy Jarbola has indicated he would investigate to see whether a crime had been committed.