Supreme Court won't hear appeal from former insurance exec Segal

(Crain's)-The U.S. Supreme Court rejected an appeal filed last year by convicted Near North Insurance exec Michael Segal.

Once a politically connected insurance broker, Mr. Segal is now serving a 10-year prison term for the fraudulent use of client funds held by his Near North Insurance Brokerage Inc. He sought to appeal his conviction in light of recent Supreme Court decisions that narrowed the definition of “honest services” fraud.

The Supreme Court's decision not to hear his appeal means he'll serve the rest of his sentence. He's in the Federal Correctional Institution in Oxford, Wis., scheduled for release in April 2013.

Mr. Segal's attorney, New York-based Mayer Brown L.L.P. partner Andrew Frey, said he was “disappointed” that the request to hear the case was denied.

Convicted in 2004, Mr. Segal was sentenced the following year to 121 months in prison, with credit for about one and a half years he had already served in prison.

Justice Elena Kagan took no part in the consideration of the appeal or the decision, the court said, without explaining why.