Insurance Executive Indicted in Alleged Embezzlement Scheme : Courts: Charles J. McGuirk is third person associated with the now-closed, Irvine-based Rubell Helm Insurance Services Inc. to face criminal charges.

Federal authorities have indicted a Fresno insurance executive in connection with an alleged embezzlement scheme at a now-defunct Irvine insurance company.

Charles J. McGuirk, 56, was arrested Thursday at his Santa Monica apartment, said Carol Levitsky, public affairs officer for the U.S. attorney’s office.

McGuirk, owner of Fresno-based National Financial Benefits Administrators Inc., is the third insurance executive associated with Rubell Helm Insurance Services Inc. to face criminal charges.

Prosecutors charge that officers of Rubell Helm, once a highly regarded life and health insurance company based in Irvine, embezzled more than $10 million to underwrite lavish lifestyles for its executives.

The company, which closed in October, 1989, also had offices in Fresno and in Maitland, Fla.

The case received national attention when Sen. Sam Nunn (D-Ga.) used the company as an example of insurance companies that prey on the public. The company first came under suspicion in 1989 and soon after became a subject of an investigation by a subcommittee of the U.S. Senate Governmental Affairs Committee.

As a result, company Chairman Michael Rubell pleaded guilty in August, 1991, to masterminding the embezzlement scheme. Vice President Kathleen Helm pleaded guilty to embezzlement charges in March. Rubell faces sentencing on Nov. 18, while Helm faces sentencing on Jan. 18.

A federal grand jury indicted McGuirk on eight counts of mail fraud, two counts of money laundering and two counts of filing false tax returns, Levitsky said.

He was arrested without incident.

Authorities charge McGuirk with accepting a $50,000 bribe from Rubell Helm in return for fronting as an insurance carrier to cover up embezzled funds, Levitsky said. McGuirk also allegedly stole more than $56,000 in commission payments that Rubell Helm paid to Diamond Benefits Life Insurance Co.

McGuirk was a director of Diamond Benefits at the time.