Two cousins who are partners in a Spring Township, Pa., insurance brokerage are accused of pocketing more than $1 million paid by six Berks County public school districts for their workers’ compensation and liability coverage.

Kevin Pickell

Kevin John Pickell, 52, of Blue Bell, Pa., and his cousin, Robert Francis Pickell, 43, of Collegeville, Pa., were arrested Jan. 6 and released on $50,000 unsecured bail, according to the Pennsylvania Attorney General’s Office. Both are due back in court Feb. 9.

Both men are partners in KDN Lanchester Corp. (KDN), a Berks County, Pa., brokerage.

The attorney general’s office said that the pair and their business were paid the premiums for policies written for the Conrad Weiser, Daniel Boone, Exeter Township, Fleetwood, Schuylkill Valley and Wyomissing area school districts. Payments ranging from $102,668 to $361,260 were deposited in KDN bank accounts and were to be forwarded to Mechanicsburg-Pa.-based School Boards Insurance Co.

Instead, the pair allegedly wrote checks totaling at least $330,000 for various personal items, including payments of $215,000 to Kevin Pickell and $53,000 to his wife, and another $140,000 in checks were written to Robert Pickell.

“The Pickells allegedly took the money for their own use – obtaining luxury cars for themselves and their spouses; having expensive wine and other items delivered to their business; writing checks for thousands of dollars in personal items and making large payments to themselves and other family members,” Pennsylvania Attorney General Tom Corbett said in a statement.

In addition to keeping the school districts’ premiums, the Pickells also allegedly obtained $191,247 in commissions improperly obtained for non-existent policies, Corbett’s office said.

Robert Pickell

A criminal complaint against the two also revealed that during the investigation into their alleged fraud, several vials containing anabolic steroids, allegedly belonging to the Pickells, along with unused syringes were located during a search of KDN’s office in October 2009.

Kevin and Robert Pickell face numerous charges, including one count of insurance fraud and two counts of participating in a corrupt organization, a first-degree felony punishable by up to 20 years and $25,000 in fines.

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

Robert Pickell a charge of possession with intent to deliver a controlled substance, a felony punishable by up to five years in prison and a $15,000 fine.