Fraud of the Week
Premium Fraud – Washington
Amount – $2.8 million
A producer who specialized in selling insurance to transportation companies fraudulently obtained premium finance loans totaling $2.8 million from April 2016 through July 2018 from a premium finance company. He created fake trucking companies and commercial policies, and obtained loans for those phony companies and policies. He also obtained a loan for a former client without that client's knowledge or permission. The finance company notified the insurance department upon discovery of the situation. The producer repaid $1.9 million with interest to the company, leaving a balance of $898,662 not including interest and fees.
The producer's license was revoked in February 2019. While the producer challenged the revocation, the department prevailed and the license was officially revoked in September 2019. The producer ultimately pleaded guilty to charges of first-degree theft involving the loans. He has been ordered to serve thirty days of confinement, pay $600 in court fees and $847,795 in restitution to the premium finance company.