James M. Kernan

James Kernan and his wife Marlene ran two insurance businesses in Oriskany, New York — Oriska Insurance Company and the Monument Agency. Between 2002 and 2005, they employed a three-time convicted felon at their companies. Federal law under 18 U.S.C. § 1033(e) prohibits anyone from knowingly permitting a person convicted of a felony involving dishonesty or breach of trust to participate in the business of insurance. The FBI raided the Oriska office on Utica Street in July 2006, initially investigating the companies on suspicion of also offering unauthorized workers' compensation insurance policies. Both Kernans were convicted in 2009 in the Northern District of New York for their roles in employing the felon. James, as the more culpable party, received the heavier sentence; Marlene was separately charged with permitting a convicted felon to engage in the business of insurance.