A prominent Toledo insurance agent has been named in a fraud scheme that authorities said targeted the nation's largest Midas Muffler franchisee, a well-known Toledo insurance agency, and local banks.

Samuel Balber of Sylvania is accused of taking $698,119 intended for Brooks Insurance Agency or up to 70 commercial customers between 1997 and Sept. 7, 2001. He is accused of depositing into his own account rebate checks from insurers intended for customers and premium checks written by customers to the Brooks Agency, said Thomas Secor, an assistant U.S. attorney.

Mr. Balber was charged in a bill of information in U.S. District Court in Toledo that was filed last week but not announced until yesterday.

His attorney, Reginald Jackson, Jr., confirmed that Mr. Balber, 60, is cooperating in the investigation.

“We have not finalized a plea agreement, but are in discussions with the U.S. attorney's office,” Mr. Jackson said.

“It has been a difficult time for Mr. Balber and his family. He is hopeful that this matter is on its way to resolution.”

Mr. Balber faces up to 30 years in prison and a fine of up to $1 million, according to the U.S. attorney's office.

The allegations surfaced publicly for the first time in a lawsuit filed May 6 by Arthur and Calvin Katz, operators of 100 Midas shops in the East and Midwest. They are longtime insurance customers and friends of Mr. Balber.

Their complaint, filed in Lucas County Common Pleas Court, alleges that he stole $2.4 million since 1979 through a scheme involving overcharges for insurance, dummy invoices, nonexistent coverage, and missing refund checks. The case is pending.

The criminal complaint contends he defrauded 40 to 70 insurance customers. Other targets included KeyBank, Sky Bank, and Fifth Third Bank, prosecutors said.

First Published September 10, 2002, 4:00 a.m.