An insurance broker and a casino executive were arrested for conspiring to steal $4 million from a California casino through a fraudulent insurance scheme.

James William Riley, 46, a broker for Corona, Calif.-based brokerage Riley, Garrison & Associates, and Ryan Jay Robinson, 39, the former chief financial officer of the Pechanga Resort & Casino in Temecula, Calif., were arrested and face arraignment Feb. 18, according to the California Department of Insurance.

Both face multiple counts of grand theft and commercial bribery and Riely is also charged with money laundering.

According to the department, in June 2007, it received a complaint from the casino and the Pechanga Development Corp., alleging a discrepancy of $6 million between the insurance payments paid to Riley’s firm for insurance coverage and the actual cost of premiums.

An investigation found that Riley allegedly fraudulently disguised the funds as fees and premiums and Robinson allegedly authorized the insurance transactions in return for more than $100,000 in kickbacks from Riley, authorities said. That money was allegedly moved through multiple accounts before being withdrawn in the form of cashier’s checks.

A decision on Riley’s insurance broker’s license is still pending by California regulators.