A former American Financial Group claim adjuster and litigation specialist has been charged with embezzling his employer out of more than $490,000 during his employment in the Los Angeles area office between 1998 and 2004. The arrest of Stephen Glenn Pirkey was the result of an investigation by the California Department of Insurance Investigation Division, which found that Pirkey had issued at least 135 settlement checks to his friends, knowing that they had no legitimate claims. Investigators also discovered that Pirkey occasionally went by the name Steve Gambino, while representing himself as a well connected entertainment lawyer and a member of the Gambino family.

"This is not a victimless crime," said California Insurance Commis-sioner John Garamendi. "The costs associated with this type of fraud inevitably are passed on to other policyholders. This former claim adjuster abused his position. Now, he will be held accountable." The Los Angeles District Attorney's Office filed one count of grand theft and one count of forgery against Pirkey, whose bail was set at $400,000.