5/23/2007 3:32 AM
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Insurance agent sentenced for graft


This article has been read 237 times.

By Linda Metz, Staff writer

lmetz@observer-reporter.com

Four people, including two elderly women, spurned a tearful apology from their former insurance agent, whom they had entrusted to invest nearly $200,000.

"I'm sorry," cried Robert S. Klein, 52, of 125 Stonegate Drive, McMurray, who appeared Tuesday before Washington County Judge Paul Pozonsky for sentencing on charges of theft and improper disposition of funds. Klein entered an open guilty plea in March, choosing to allow the judge to decide his fate.




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The victims openly scoffed at Klein's apology.

Klein was charged by the state attorney general's office for accepting checks totaling $166,714 from 82-year-old Claire. L. Derringer of Pittsburgh from April 6, 2001, to Dec. 15, 2003, for a life insurance policy. He directed the woman to make the checks out to him rather than the company. The woman became aware of the theft when she received notice from the company in 2004 that her policy had been canceled.

In addition, Donna and Thomas Popchak of Johnstown, acting on Klein's advice, cashed in annuities and purchased a life insurance policy for Thomas Popchak in 1997 and 1998.

In 2001, the Popchaks received a notice from Degree of Honor Protective Association that the policy had lapsed. Klein instructed them to give him a check for $6,300 and he would take care of it. Klein cashed the check but never forwarded the money to the insurance company, court records indicated.

Klein also received checks of $5,800, $5,400 and $450 for payments on different policies. However, none of the payments was applied to the Popchaks' accounts.

The Popchaks sent a letter complaining about Klein to Hartford Life Insurance, prompting an investigation.

Klein also took checks totaling $13,506 from Dorothy Grimm of Washington for a life insurance policy. The money was never forwarded to the company. Grimm notified Klein after receiving several payment-due notices, but he promised her that he would take care of it for her. Her policy lapsed in 2003 because of lack of payment.

The victims addressed the court prior to the sentencing. Each expressed disdain for Klein, not only for the theft of their money but for the breach of their trust by a man whom they welcomed into their homes and lives.

Deputy Attorney General Jerome A. Orie asked the judge to impose a state sentence for the seriousness of Klein's crimes, which have taken a significant toll on the victims.

Orie went on to point out that in the Grimm case, the 75-year-old woman believed that she was ensuring a legacy for her six children. Now, Orie said that Grimm has been diagnosed with leukemia and can't get a life insurance policy.

"She was so embarrassed by it that she didn't even tell her children," Orie explained. "She feels she did something wrong, and all she did was to trust someone."

Meanwhile, Klein's attorney, Chris Blackwell, agreed that Klein violated the victims' trust, but he argued that Klein didn't initially intend to deceive the victims.

"He didn't got into relationships with these people to steal from them. He went into the relationships with good intentions," Blackwell said.

Pozonsky then sentenced Klein to a county jail term of 111/2 to 23 months with work release, followed by an additional 5 years of probation. The judge explained that his sentence was based on guidelines that called for a lesser sentence because the charges were filed separately rather than as one charge that would have included the higher, total amount of money stolen.

However, Pozonsky chastised Klein for his actions.

"These folks were friends of yours," the judge said.

Klein also will be required to repay the victims the money he had stolen. He is to report to the county jail to begin his sentence June 11.




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