Herndon man to plead guilty to insurance theft
WILLIAMSPORT - A Herndon man charged by the U.S. Attorney's Office with stealing more than $630,000 in insurance funds plans to enter a guilty plea Tuesday.
Derl H. Knarr, 55, will plead guilty to a felony of theft of insurance funds before Judge Matthew Brann in U.S. District Court in Williamsport and has agreed to make full restitution.
According to U.S. Attorney Peter J. Smith, Knarr stole the funds in Snyder, Northumberland and other counties while he worked as an agent for Allstate Financial Services. The thefts occurred between 2006 and 2012.
The investigation was conducted by the FBI, State College Resident Office.
Allstate Financial Services is a subsidiary of Allstate Insurance Company, which offers auto, home, life and business insurance, retirement and investment products and banking services.
According to court documents, Knarr allegedly embezzled, abstracted, purloined and misappropriated money, funds, premiums, credits and other property of the insurance business totaling $630,836.72. His actions caused clients to liquidate certain Lincoln Benefit Life Company annuities and endorse proceeds checks to him.
Knarr is accused of depositing the endorsed checks into accounts which he controlled including a TD Realty account at M&T Bank. Knarr collected funds from clients for the purchase of annuities which the defendant failed to purchase, but deposited into accounts that he controlled at M&T Bank and Union Bank.
Knarr also allegedly used the funds stolen from his clients to pay for personal expenses including trips to gambling casinos in Pennsylvania and New Jersey.