Richard James, a broker who was well-known in the Guyanese community, and his pal Ronald Mallay, are accused of setting up life insurance policies for the down and out, then killing them to collect the money.

The Justice Department's approval of a request by Brooklyn prosecutors to seek the death penalty was no surprise. In February, the prosecution team was shuffled because the previous assistant U.S. attorney assigned to the case opposed the death penalty, sources told the Daily News.

James, 43, wrote the policies on unsuspecting Guyanese immigrants with drug or alcohol problems, according to Court papers.

He and Mallay, 57, are charged with conspiracy to commit murder in the deaths of Hardeo Somaipersaud and Hardeo Sewanan, who was Mallay's nephew.

Somaipersaud was found dead in Smokey Park in Queens in January 1998. The medical examiner determined the cause of death was a combination of alcohol and anti-psychotic medication.

An informant told investigators that Mallay had attempted to hire a hit man to kill Somaipersaud in the park.

Prosecutors also contend that James had brokered a life insurance policy on Somaipersaud.

Sewanan died in June 1999 in Guyana after ingesting alcohol and ammonia. James was the agent and Mallay the beneficiary of at least two life insurance policies on Sewanan.

A new indictment against the pair, which could contain additional murder charges, will be handed up early next month.

Investigators have suspected James and Mallay's involvement in at least a dozen suspicious deaths.

"Based on the evidence we've seen, I don't have a clear idea what my client did to cause the deaths of the two victims," said James' lawyer, Ephraim Savitt.

Mallay's lawyer said his client, who had heart surgery last year, needs a follow-up visit with a cardiologist.