Local Residents Charged With Fraud

Bruce and Irene Gardner, of Richboro, and Michael Gardner, of Philadelphia, were charged yesterday with 13 counts of wire fraud, mail fraud and conspiracy to commit wire and mail fraud, announced United States Attorney Zane David Memeger. 

These charges stem from the defendants' ownership and operation of Gardner Financial Services, Inc., an insurance brokerage agency in both Philadelphia and Upper Southampton, a press release said. Online records show Gardner Financial Services, Inc. operated an office at 283 Second Street Pike in the township.

Records state that Bruce and Michael Gardner, who owned 75 and 25 percent of the company, respectively, used it to defraud clients, insurance and finance companies.

Bruce Gardner lost his license to sell insurance in 2007 after complaints from insureds, premium finance companies, and insurance companies, the indictment stated.

When the Pennsylvania Insurance Commission discovered the fraud and threatened to revoke the company’s license, Bruce, Michael and Irene Gardner inflated the sales price of the company by misrepresenting the numbers of clients and policies, the indictment stated.

If convicted, Bruce Gardner and Michael Gardner face a maximum sentence of 230 years imprisonment, a three-year term of supervised release, a $3,250,000 fine, and a $1,300 special assessment.  

If convicted, Irene  Gardner faces a maximum sentence of 45 years imprisonment, a three-year term of supervised release, a $750,000 fine, and a $300 special assessment.  

The case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.