CPA from Oklahoma charged with embezzlement to the tune of $1.2 million

OKLAHOMA CITY – Attorney General John O’Connor filed a felony embezzlement charge against the person who was appointed as a fiduciary to liquidate a failed insurance company. Nestor Romero is accused of taking over one million dollars from an insurance company’s receivership estate.

When an Oklahoma-based insurance company cannot meet its policy obligations, the Oklahoma County District Court appoints a Receiver to liquidate the insurance company. The Oklahoma Insurance Commissioner is the Receiver and appoints an assistant receiver to wind down the company.

Romero is a CPA who previously served as an examiner of insurance company financial operations for state insurance departments. Romero was appointed assistant receiver of Red Rock Insurance Company in 2014.

In February 2022, the Oklahoma State Bureau of Investigation (OSBI) was requested by the Oklahoma Attorney General’s Office to investigate allegations that Romero wrongfully transferred $1.2 million from Red Rock Insurance Company’s receivership accounts to his personal and business accounts. According to court documents, the fraudulent transactions took place between 2015 and 2019 when Romero had total control of the insurance company’s bank accounts.

“As a court-appointed receiver, Romero was entrusted with control of millions of dollars belonging to Red Rock Insurance Company,” said Attorney General O’Connor. “Romero instead took advantage of that trust for his personal gain. This prosecution of Romero will send a message to all fiduciaries. All Oklahoma taxpayers ultimately pay, to some degree, for insurance company failures.”

“When I first took office, we did a top-to-bottom review of all processes. I’m proud of the hard work of our staff and accounting controls that we put in place that led to this discovery,” said Insurance Commissioner Glen Mulready. “These receiverships are complex, and it is my job to make sure that all parties are upholding the law and held accountable to their fiduciary responsibility.”

Romero is charged with one count of embezzlement. If convicted, he faces up to eight years in prison and up to $10,000.00 in fines, along with restitution.