NU Online News Service, Aug. 26, 12:00 p.m. EDT

Four Scranton, Pa.-area residents involved with the now-bankruptMurray Insurance Agency have been arrested in connection with analleged $7.5 million pyramid scheme from the business'headquarters, ironically known as One Pyramid Center inScranton.

Pennsylvania Attorney General Tom Corbett said as a result of aninvestigation by his office's Insurance Fraud Section, the chiefexecutive officer and president of Murray Insurance Agency, as wellas their spouses, have been arrested on multiple fraud, moneylaundering and conspiracy charges related to the alleged stealingof $7.5 million over the last decade, and for using an offshoreaccount to hide $10 million to avoid paying state taxes, Mr.Corbett said.

The quartet was involved in collecting insurance premiums fromclients without buying insurance. Victims included the Universityof Scranton, Marywood University, Loyola College of Maryland, St.Joseph's University, Mount Airy Casino Resort, the LackawannaCounty Mutli-Purpose Stadium and other educational institutions,local governments, businesses and non-profit groups, said Mr.Corbett.

Brain James Murray, CEO, chairman and principle of the bankruptMurray Insurance Agency, and Christine Oliver-Shean, agencypresident, were charged with criminal conspiracy, money laundering,theft, insurance fraud, forgery, participating in a corruptorganization, tampering with evidence, obstruction of lawenforcement and other tax crimes, said Mr. Corbett.

Diane D. Murray, Mr. Murray's wife, was charged with theft andconspiracy and filing false corporate and personal tax returns. Mr.Corbett said Ms. Murray allegedly diverted money from anotherbusiness to her husband's agency, which declared bankruptcy in2008.

Timothy G. Shean, the husband of Ms. Oliver-Shean, was chargedwith conspiracy, tampering with evidence and obstruction because heallegedly tried to hide company records from investigators, Mr.Corbett said.

Mr. Murray and Ms. Oliver-Shean are also charged with using anoffshore business in the Virgin Islands to allegedly shuttle morethan $10 million in income to avoid paying state taxes, Mr. Corbettsaid.

Mr. Murray was arrested in early July for allegedly stealing$1.3 million in premium payments collected by his company. The newarrests and additional charges are the result of an additionalinvestigation from Mr. Murray's previous arrest, Mr. Corbettsaid.

According to the indictment, the agency's alleged criminal pastbegan when Mr. Murray caught Ms. Oliver-Shean taking tens ofthousands of dollars from the agency. But instead of firing her, hemade her president of the agency and the two launched the allegedpyramid scheme in which loans were taken out in the names ofclients without their knowledge. Each year, more and more loanswere taken out to meet the payments.

Mr. Corbett said criminal charges of multiple felony counts werealso filed against three businesses--Murray Insurance Agency,Mallow Holding Company and Gaffer Insurance Company Ltd.