Serfass

HARRISBURG - Agents from the Attorney General's Insurance Fraud Section and Elder Abuse Unit have arrested a Lehigh County insurance agent accused of stealing more than $676,000 from senior victims stretching across eastern and central Pennsylvania.

Thomas B. Serfass, 54, 4581 Jasmine Drive, Center Valley had victims in several counties, including Pike. Pike County District Attorney cooperated in the investigation.

Attorney General Tom Corbett said that Serfass is accused of using his Lehigh County insurance business, Thomas Serfass and Associates, to market various investment products and services to senior citizens in Berks, Lackawanna, Lancaster, Lehigh, Northampton, Pike and York counties.  Serfass allegedly sold what he described as "private annuities," which promised high guaranteed interest rates, along with "asset protection policies," which were supposed to help safeguard the assets of older consumers.

"Instead of helping seniors invest their hard-earned money or purchase coverage to protect their assets, Mr. Serfass allegedly sold them non-existent policies and used the money to pay his own personal expenses," Corbett said.  "Using the dubious title of 'certified senior advisor,' he targeted older residents across the Lehigh Valley and Central Pennsylvania, stealing their money, their trust and their financial security."

According to the criminal complaint, Serfass sold various "private annuity agreements" or "individual annuity agreements" to consumers, who believed they would receive a higher interest rate compared to traditional investment accounts. 

The funds paid to Serfass by various seniors were not deposited into any form of secure, interest-bearing account.  Instead, consumers' investments were allegedly deposited into Serfass' business checking account and used to pay various business and personal expenses.

Corbett said that Serfass also allegedly sold various "asset protection" insurance policies to senior victims, who believed that the policies would help safeguard their assets - preventing the loss of their homes should they be required to enter a nursing home. 

According to the criminal complaint, the asset protection policies were sold in the name of the "Nevada Group," an insurance company that does not exist in Pennsylvania according to Insurance Department records.  There are no records of any insurance policies being purchased with the funds that seniors paid Serfass for this coverage.

Corbett said the investigation by the Attorney General's Elder Abuse Unit and Insurance Fraud Section has identified 25 victims, ranging in age from 60 to 85 years old, who suffered a combined loss of $676,382.  The losses for individual victims ranged from $500 to more than $200,000.

Serfass is charged with 25 counts of insurance fraud, 25 counts of theft by deception and 25 counts of theft by failure to make required disposition of funds, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines.  He is also charged with one count of participating in a corrupt organization, a first-degree felony punishable by up to 20 years in prison and a $25,000 fine.

Serfass is in the Lehigh County Jail in lieu of $200,000 bail.