LOS ANGELES – A former Northridge resident was sentenced Monday to more than four years in federal prison for orchestrating a $3.7 million fraud scheme involving fake fine art insurance policies.
Tonja Van Roy, 59, who owned and operated Pegasus Insurance, was sentenced by U.S. District Judge Stephen V. Wilson in downtown Los Angeles. In addition to 51 months in federal prison, Van Roy was ordered to pay $1.88 million in restitution, according to the U.S. Attorney’s Office.
Van Roy pleaded guilty in January to one count of wire fraud.
From January 2021 to December 2023, Van Roy submitted dozens of fraudulent finance agreements to AFCO Credit Corp., a company based in Illinois that provides financing for insurance premiums. She claimed the funds were for policies sold to art galleries—but the policies and clients were entirely fabricated.
Court records reveal that Van Roy falsified insurance policy numbers and forged electronic signatures of fictitious clients. Rather than purchasing policies, she used the loan money for personal expenses, including payments on dozens of credit cards.
When the original loans came due, Van Roy allegedly created new fake agreements and used the new loan proceeds to make it appear as though she had paid off earlier debts—essentially operating a Ponzi-like scheme.
Authorities say Van Roy’s actions not only defrauded the lender but also eroded trust in the insurance financing system. The case highlights the vulnerability of financial institutions when documentation is manipulated at scale.
