SYRACUSE -- an indictment has been filed against an Oriskany couple on charges related to their insurance business.

James Kernan, 59, and his wife, Marlene Kernan, 58, who reside in Oriskany, New York were named as defendants in a superseding indictment returned by a federal grand jury in Syracuse on July 31.

James is the president of Oriska Insurance Company and Marlene is the president of Monument Agency, Inc. Both companies have offices located at 1310 Utica Street, Oriskany.  James is charged in one count of conspiracy to commit mail and wire fraud.

The indictment alleges that James Kernan defrauded several professional employer organizations located in New York, California, Arizona and Pennsylvania by marketing to these PEOs unlawful and invalid workers compensation insurance policies issued by Oriska Insurance Company.  The indictment alleges that these policies were written to cover workers in states where Oriska Insurance Company was not licensed or authorized to provide workers compensation insurance.  In addition it is alleged that the policies provided to the PEOs provided for deductible amounts which Oriska was not authorized to include in their policies.  The maximum penalty for the conspiracy count is 10 years imprisonment and a $250,000 fine.  Each mail and wire fraud count is punishable by a maximum of twenty years imprisonment and a $250,000 fine.

He is also charged with making a false statement to a representative of the New York State Insurance Department by mischaracterizing the reason why Oriska Insurance Company paid off the balance of an automobile lease in the amount of $39,841.54.

Both husband and wife are charged with permitting a convicted felon to be engaged in the business of insurance. The indictment alleges that the couple permitted Robert Anderson to be engaged in insurance business with Oriska Insurance Company and Monument Agency, Inc. from December 2001 through July 2005.  Anderson had previously been convicted of several felonies in California during 1988 through 1996.  These counts are punishable by a maximum of five years imprisonment and a fine of $250,000.