Fraud of the Week

Premium Fraud – Montana

Amount – Unknown

A former commercial insurance broker was charged with criminal insurance fraud and theft of insurance premiums; he pled guilty to six charges. Between September 2018 and September 2020, the former broker allegedly stole insurance premiums from five separate companies related to in-state and surplus lines policies. In one instance he had an insured pay him directly instead of the company, and he altered a declarations page to show that coverage existed when there was no coverage. The broker was recently sentenced to 90 days in prison, given a 10-year suspended sentence, and ordered to pay $150,000 in restitution to his victims.