Fraud of the Week

Premium fraud – Washington

Amount – $273,137

A former Washington agent has been sentenced to two years in prison, three years of supervised release, and repayment of $273,137 to eight different insurers and brokers for the theft of premium payments via wire fraud. She pocketed the premiums instead of sending the funds to the carriers and created fake certificates of insurance that she gave to the insureds. Instead, she used the funds to support her gambling habit at local casinos. She specialized in finding coverage for high-risk fields such as process servers, security guard companies, and private investigators, among others. The agent hid the company cancellation notices from the insureds as she had pocketed the premium payments, so the policyholders did not know they had no coverage.