Grimy Times has learned that a Santa Clara insurance broker has been charged with wire fraud and mail fraud in connection with an alleged attempt to steal over $1 million from a client’s trust account.
According to an indictment unsealed today, Gary Thornhill, 63, of Santa Clara, is accused of using his position in a boutique insurance brokerage to withdraw funds from a widow’s client trust account.
Thornhill allegedly transmitted written requests for funds to be drawn against the cash value of the widow’s insurance policy and then deposited the proceeds into an account he exclusively controlled as trustee for the policy.
Throughout calendar year 2011, Thornhill allegedly withdrew almost $1.5 million from the account and put the funds into the account which he controlled and used for his own personal benefit.
Thornhill is charged with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of mail fraud, in violation of 18 U.S.C. § 1341.
Thornhill was arrested today and made his initial appearances in federal court in San Jose before the Honorable Paul S. Grewal, U.S. Magistrate Judge.
Thornhill was released on a $500,000 bond with conditions. His next scheduled appearance is set for Monday, May 2, at 1:30 p.m. before Magistrate Judge Cousins for review of the bond conditions.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the defendant faces up to 20 years’ imprisonment, a fine of $250,000 or twice the gross gain or twice the gross loss, plus restitution.
The case is being prosecuted by Assistant U.S. Attorney Timothy J. Lucey with the assistance of Laurie Worthen.
The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Related Federal Cases
- Nazaret Chakrian, ID Theft and Wire Fraud, California 2023 · Idaho
- Susan Hacker, Social Security Benefits Theft, California 2001 · Kansas
- Daniel Deaibes, Wire Fraud and Aggravated Identity Theft, California 2012 · Florida
- Christopher Guilford, Tax Refund Scheme, California 2025 · Virginia
- Frank Hamilton, SBA Scam, California 2023 · Texas
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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