It came to the attention of the Ohio Department of Insurance that several individuals living in the state were paying premiums for insurance, but had no coverage. The department and the local sheriff’s office conducted an investigation into the allegations. The agent believed to be responsible for these individuals paying for policies but having no actual coverage was ultimately charged with a number of crimes, including insurance fraud.
Reports indicate that the former insurance agent sold the property insurance policies and collected premiums on those policies, but never forwarded the payments to the companies that were to provide the coverage. In July of last year, he surrendered his license. In April of this year, the Ohio man pleaded guilty to numerous charges, including theft from the elderly, grand theft and insurance fraud.
Recently, he was sentenced to 60 days of jail time and community control for five years. He was also ordered to pay restitution to his victims in the amount of over $21,000. If for some reason the man fails to comply with the conditions of his community control term, he could end up in prison for six-and-a-half years.
For this man, a review of the evidence of insurance fraud gathered by law enforcement officials that prosecutors intended to present in court most likely presented too large a risk if the case would have gone to trial. Therefore, he explored the option of entering a plea, which typically yields a much lighter sentence than a person would otherwise face. Everyone accused of a crime has the right to a fair trial, but sometimes, it is not in the best interest of the defendant. In those cases, it is important to pursue other options that may provide a better outcome.
Source: insurancejournal.com, “Former Ohio Insurance Agent Gets Jail Time on Fraud-Related Charges“, , June 17, 2014