Two Scranton, Pa., insurance agents, their spouses and three insurance agencies allegedly were part of what prosecutors call a “pyramid scheme” in Lackawanna County, Pa., netting more than $7.5 million.

Brian James Murray

Last month, one of the alleged participants, Brian James Murray, 67, owner of the bankrupt Murray Insurance Agency in Scranton, Pa., was arrested for his alleged involvement in the theft of more than $1.3 million in premium payments that were collected by his company.

In the latest action, the Pennsylvania Attorney General’s Insurance Fraud Section filed criminal charges against Murray, who served as chairman, CEO and principal of the Murray Insurance Agency, and the company’s president, Christine M. Oliver-Shean, 51, also of Scranton. Both are charged with a series of crimes, including criminal conspiracy, money laundering, theft, insurance fraud, forgery, participating in a corrupt organization, tampering with evidence, obstructing law enforcement and various tax crimes.

Murray’s wife, Diane D. Murray, 66, is charged with theft and conspiracy involving money allegedly diverted from another business to the Murray Insurance Agency, along with filing false corporate tax returns and filing false personal income tax returns.?Oliver-Shean’s husband, Timothy G. Shean, 53,  is accused of conspiracy, tampering with physical evidence and obstructing law enforcement regarding efforts to allegedly hide company records from investigators.

After an “extensive” grand jury investigation, Attorney General Tom Corbett said, Murray and Oliver-Shean allegedly used an offshore business, registered in the British Virgin Islands, to conceal more than $10 million in income and avoid paying Pennsylvania taxes.

Among the victims of the alleged scheme, according to prosecutors, are the University of Scranton, Marywood University, Loyola College of Maryland, St. Joseph’s University and other educational institutions; Mount Airy Casino Resort; local government agencies like Phoenixville Borough; Moses-Taylor Hospital; the Lackawanna County Multi-Purpose Stadium; and other unsuspecting businesses and non-profit groups.

In the earlier case, Murray is accused of illegally diverting $1,302,672 in premiums that should have been forwarded to insurance companies as payment for policies issued to numerous organizations, including Mt. Airy Casino, the University of Scranton, St. Joseph’s University, Loyola College of Maryland, Moses Taylor Hospital and the Borough of Phoenixville in Chester County, Pa.

Three businesses linked to the alleged scheme also were charged. They include: The Murray Insurance Agency, 415 Spruce St., Scranton; The Mallow Holding Company, 415 Spruce St., Scranton; and Gaffer Insurance Company Limited, incorporated in Tortola, British Virgin Islands.

All three businesses have been charged with multiple felony counts, including participating in a corrupt organization, dealing in the proceeds of unlawful activity (money laundering), criminal conspiracy, aiding in the consummation of a crime, theft by deception, theft by unlawful taking, theft by failure to make required disposition of funds, insurance fraud and forgery. They are also charged with misdemeanor counts of tampering with or fabricating physical evidence, obstructing the administration of law, willfully filing false and fraudulent corporate income tax returns, willfully filing false and fraudulent Pennsylvania personal income tax returns and failure to file corporate tax returns.

Brian Murray was released on $100,000 bail, with the condition that he remains under house arrest pending his preliminary hearing.

Diane Murray was released on $100,000 unsecured bail; Christine Oliver-Shean was released on $10,000 unsecured bail; and Timothy Shean was released on his own recognizance.

Brian Murray is charged with two counts of participating in a corrupt organization, along with one count each of dealing in the proceeds of unlawful activity (money laundering), criminal conspiracy, all first-degree felonies which are each punishable by up to 20 years in prison and $25,000 fines.

Brian Murray is also charged with one count of forgery, a second-degree felony punishable by up to ten years in prison and a $25,000 fine, along with five counts of theft by deception, five counts of theft by unlawful taking, five counts of theft by failure to make required disposition of funds, three counts of forgery, one count of insurance fraud and one count of aiding in the consummation of a crime, all third-degree felonies each punishable by up to seven years in prison and $15,000 fines.

Also, Brian Murray is charged with misdemeanor counts of tampering with or fabricating physical evidence, obstructing the administration of law, willfully filing false and fraudulent corporate state income tax returns and personal state income tax returns, as well as failure to file corporate state tax returns.

Oliver-Shean is charged with two counts of participating in a corrupt organization, along with one count each of dealing in the proceeds of unlawful activity (money laundering), criminal conspiracy, all first-degree felonies which are each punishable by up to 20 years in prison and $25,000 fines.? ?Christine Oliver-Shean is also charged with one count of forgery, a second-degree felony punishable by up to ten years in prison and a $25,000 fine, along with seven counts of theft by deception, seven counts of theft by unlawful taking, seven counts of theft by failure to make required disposition of funds, three counts of forgery, one count of insurance fraud and one count of aiding in the consummation of a crime, all third-degree felonies each punishable by up to seven years in prison and $15,000 fines.

Oliver-Shean is charged with misdemeanor counts of tampering with or fabricating physical evidence, obstructing the administration of law, willfully filing false and fraudulent corporate state income tax returns and personal state income tax returns, as well as failure to file corporate state tax returns.

Diane Murray is charged with one count each of theft by unlawful taking and criminal conspiracy, both third-degree felonies each punishable by up to seven years in prison and $15,000 fines, along with misdemeanor counts of willfully filing false and fraudulent corporate state income tax returns and personal state income tax returns.

Timothy Shean is charged with one count each of tampering with or fabricating physical evidence, obstructing the administration of law and criminal conspiracy, all second-degree misdemeanors which are each punishable by up to two years in prison and $5,000 fines.

A preliminary hearing for all four defendants is scheduled for Aug. 31. in Lackawanna County Central Court.