Van Roy Gets 4+ Years for $3.7M Art Insurance Scam

LOS ANGELES – Tonja Van Roy, 59, of Las Vegas, formerly of Northridge, is headed to federal prison for more than four years after pleading guilty to a brazen $3.7 million insurance fraud scheme. U.S. District Judge Stephen V. Wilson handed down a 50-month sentence today, along with an order for Van Roy to pay $1,880,237 in restitution. The case exposes a calculated betrayal of trust within the specialized world of fine art insurance.

Van Roy, who owned and operated Pegasus Insurance in Northridge, specialized in policies covering high-value art collections. From January 2021 to December 2023, she systematically defrauded AFCO Credit Corp., a Lake Forest, Illinois-based insurance premium finance provider. The scheme revolved around fabricated finance agreements for insurance policies she falsely claimed to have sold to art galleries. These weren’t just errors; they were meticulously constructed lies.

Court documents reveal Van Roy didn’t simply misrepresent facts – she invented policy numbers and forged electronic signatures for nonexistent insureds. The $3.7 million in fraudulently obtained funds didn’t go towards legitimate business expenses. Instead, prosecutors detailed how Van Roy used the money to fuel a lavish lifestyle, paying off dozens of credit cards and indulging in personal expenses. The money was a slush fund for her own desires.

The deception didn’t stop at initial loans. As payments came due, Van Roy doubled down, submitting *additional* fraudulent agreements to AFCO. She then used the proceeds from these new loans to create the illusion that previous debts were being settled – a classic Ponzi-style tactic masking the underlying fraud. This wasn’t a one-time mistake; it was a sustained, multi-year effort to cover her tracks.

Prosecutors argued in a sentencing memorandum that Van Roy’s 25+ years of experience in the insurance industry was a key component of her success in avoiding detection. “She had an expert’s understanding of the industry, which allowed her to manipulate her victims and avoid detection for years,” the memo stated. Her insider knowledge wasn’t used to protect clients; it was weaponized to steal millions.

The investigation was a joint effort by Homeland Security Investigations and the California Department of Insurance. Assistant United States Attorney Andrew Brown of the Major Frauds Section successfully prosecuted the case. Van Roy’s case serves as a stark reminder that even those with extensive industry knowledge aren’t immune to federal prosecution when they choose to break the law and exploit the system for personal gain.

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