Segal Sentencing Set For June; Still Licensed

By Mark E. Ruquet

NU Online News Service, March 16, 12:00 p.m. EST?Convicted embezzler Michael Segal, the former chief executive officer of the Chicago-based insurance firm Near North, while awaiting sentence also has an insurance license revocation hearing pending.[@@]

Mr. Segal, who has managed to delay his sentencing for more than eight months, has now had his sentence date rescheduled for June 29 by U.S. District Judge Ruben Castillo in Chicago.

Shortly after Mr. Segal's conviction, the Illinois Department of Insurance revoked the licenses of Mr. Segal and Near North. The department also imposed a $1.5 million fine for both and ordered the payment of $1 million in restitution to consumers.

The order was stayed pending a hearing, which Mr. Segal and Near North requested, said Susan Hofer, spokeswoman for the department. A hearing date has not been scheduled pending the completion of court proceedings, she said, which is procedure.

Mr. Segal was convicted in June of last year by a federal grand jury on 26 counts related to the $20 million embezzlement of funds from Near North's premium trust account.

According to Marc Martin, an attorney for Mr. Segal, the defense requested the re-scheduling after federal prosecutors submitted a 55-page position paper on sentencing eight months late. The defense needed time to review the document and respond to the prosecutor's motion, he said.

The U.S. Attorney's office is requesting a sentence of 30 years to life for Mr. Segal, claiming the magnitude of his offense and the extended conspiracy behind the crime deserves stiff punishment.

While Mr. Segal was charged with embezzling $20 million from the trust fund, prosecutors argue that court testimony revealed the conspiracy to use the trust fund may have involved more than $30 million and extended back to the 1980's.

In addition to time in prison, in a forfeiture proceeding, the jury found he should forfeit $30 million from his personal funds and 60 percent of his stock interest in Near North.

Mr. Segal, 61, has been confined to jail since his conviction. He has undergone psychiatric evaluations that have established he suffers from attention deficit disorder, which is hindering his ability to assist in his defense.

Mr. Martin refused to comment on the evaluations.

Near North was convicted of 21 counts in the scheme that include 11 counts of mail fraud, seven of making false statements and three of embezzlement.

Special Reports /

Segal Sentencing Set For June; Still Licensed

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