Feds say Segal took money from charities Cash owed to clients of Near North Insurance allegedly was not paid

Indicted insurance czar Michael Segal stole money owed tochildren's charities and a Rockefeller heiress, a Little League teamand major league ball clubs, and even an Episcopal church, accordingto allegations in a court document recently unsealed in Segal'scriminal case.

On Monday, Segal will go to trial to fight allegations he siphonedmore than $20 million from a key account at his Near North InsuranceBrokerage. Federal prosecutors also have charged that Segal routinelywrote off financial credits due his customers -- money the clientswere owed but never paid. Segal has denied any wrongdoing.

A Segal spokeswoman had no comment on the new details, but Segaldid get some good news in court Thursday. U.S. District Judge RubenCastillo ruled that prosecutors likely won't be able to tell jurorsthat Segal used company money to pay hookers. They will get to bringup other personal spending. Segal also will likely get to argue heintended to pay off any alleged deficit.

Among the people Near North Insurance allegedly owed money to wasChicago socialite and Rockefeller heiress Abra Prentice Wilkin, knownfor her charitable giving, as well as Near North Little League, whichprovides baseball to about 160 kids, many of them underprivileged.

Wilkin, a former Chicago Sun-Times reporter, said she feltsympathy for Segal:

"I'm sorry that what's happened to Mickey has happened to Mickey."

Her husband, James P. Wilkin, said the firm had insured thecouple's homes and other personal items for about two decades, butthey dropped the firm after it became embroiled in controversy.

"It's beyond me that anybody would do that, when they've got sucha successful business," James Wilkin said of the alleged credit write-offs.

Eric Boeckmann, a treasurer for Near North Little League, whichhas no connection to the firm, said he would reserve judgment untilhe learned what his Little League was owed. Near North got insurancefor a league van.

But he added: "Their deviousness knew no bounds if they weretaking advantage of a Little League."

Other charities on the Near North list allegedly owed money arethe Ada S. McKinley Community Center, the Children's Home and AidSociety, Metropolitan Family Services, the Baltimore Area Council BoyScouts of America and St. Chrysostom's Episcopal Church in Chicago.Representatives from some groups said they would explore what moneythey were owed.

Notables on the list include investor Peter Huizenga, a formerdirector and co-founder of Waste Management; William Brodsky, chiefexecutive of the Chicago Board Options Exchange; the late developerPhilip Klutznick; ex-congressman Dan Rostenkowski and former CookCounty Commissioner Ted Lechowicz, and the restaurant operations ofPhil Stefani.

The Milwaukee Brewers organization made the list, while the TexasRangers are mentioned in another court document.

The document of about 130 Near North clients was originally agovernment exhibit that prosecutors submitted to the court underseal. Segal's defense team made public a portion of the list in acourt filing earlier this week. It's unclear how much money theclients were owed. The amounts have apparently been whited out. Thelist is about four years old. The U.S. attorney's office declined tocomment.

A defense court filing also suggests the names of politicians thatmay come up at Segal's trial. Those include Ald. Ed Burke (14th),Ald. Burton Natarus (42nd), Cook County Board President John Strogerand former Gov. George Ryan, whose son worked with Segal.