Fraud of the Week

January 9, 2017

Agent Fraud—Utah

Amount: $3,500

 

A Utah woman plead guilty to Streetfest insurance fraud. The former insurance agent scammed the city of St. George, Utah, and several event vendors by claiming the money they paid her was going toward insurance premiums. She inflated the premium costs and kept the extra money for her own personal use. She claimed to have procured $4 million in insurance for the festival, when in actuality only $2 million was purchased. She also claimed to have purchased insurance for two months when no insurance had been purchased.

 

She was sentenced to thirty days of house arrest for committing a false or fraudulent scheme to obtain fees or services, forgery, and unlawful dealing with property by fiduciary. She was initially charged with three third-degree felonies, but the charges were reduced to misdemeanors because she swiftly paid restitution prior to sentencing. She surrendered her insurance license as a part of the plea deal.