A federal jury in Hartford after one hour of deliberation found Earl O’Garro Jr., 32, formerly of Marlborough, guilty of defrauding a specialty lender, insurance carriers and the state of Connecticut. His total fraud exceeded an estimated $1.7 million, according to federal prosecutors.
During the trial, the prosecution said O’Garro used the stolen funds to support an extravagant lifestyle. He was the president, CEO and an owner of Hartford-based Hybrid Insurance Agency LLC, a wholesale insurance brokerage specializing in placing excess and surplus line insurance products.
Prosecutors said O’Garro misrepresented to Capital Premium Financing that he sold the company insurance policies that he never actually took out. He subsequently received $849,282.55 in premium payments from Capital, which he used for his own use.
Hybrid also served as the wholesale broker for insurance policies held by the City of Hartford. In July 2013, O’Garro, according to prosecutors, directed the city to transfer $868,244 in premiums to Hybrid.
After being wired the funds, O’Garro intentionally withheld $669,997 in premium payments from the appropriate excess insurance carriers. Approximately 17 minutes after receiving the funds, O’Garro wired $300,000 to Capital Premium Financing as partial repayment for the monies he had been caught stealing from them.
The evidence at trial also established that, in approximately July 2013, O’Garro, on behalf of Hybrid, submitted a false application to the state Department of Economic and Community Development for a $500,000 loan.
The jury found O’Garro guilty of two counts of wire fraud and one count of mail fraud. Each charge carries a maximum term of imprisonment of 20 years. Sentencing is scheduled for March 7, 2016. O’Garro has been released on a $500,000 bond since his arrest on Nov. 21, 2014. He will now be subject to electronic monitoring while awaiting sentencing.
