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

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

Pennsylvania Attorney General Tom Corbett said as a result of an investigation by his office's Insurance Fraud Section, the chief executive officer and president of Murray Insurance Agency, as well as their spouses, have been arrested on multiple fraud, money laundering and conspiracy charges related to the alleged stealing of $7.5 million over the last decade, and for using an offshore account to hide $10 million to avoid paying state taxes, Mr. Corbett said.

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