Former California Agent Sentenced for Stealing $100Okay in Premiums and Investments
Former licensed insurance coverage agent Frederick Donald Rollins, 42, of Moreno Valley, Calif., was sentenced right this moment after pleading responsible to 1 felony depend of grand theft, two counts of securities fraud and an aggravated white-collar crime enhancement for stealing greater than $100,000 in insurance coverage premiums and funding funds from 10 victims.
Rollins was sentenced to 1 12 months in custody and to pay $100,363 in restitution to his victims.
“Many people make the mistake of thinking insurance fraud is a victimless white-collar crime,” Insurance Commissioner Dave Jones stated in a press release. “This agent left his clients at great financial risk when he failed to secure their policies, leaving them without the coverage they paid for.”
The California Department of Insurance launched an investigation after receiving a number of complaints, together with one from an insurance coverage service after an organization tried to file a declare for its injured worker below what turned out to be a non-existent coverage quantity and the opposite from a enterprise proprietor who found they’d no reliable employees’ compensation or legal responsibility protection.
According to investigators, whereas working as a licensed agent at an insurance coverage company Rollins collected premium funds from a number of shoppers for employees’ compensation and business basic legal responsibility protection, however failed to put protection with any service.
After leaving that company, Rollins continued to promote fraudulent insurance policies below a company he registered with the Nevada Secretary of State, however by no means licensed by the California Department of Insurance. The investigation revealed greater than $20,000 in premium funds Rollins collected from his victims, both made payable on to him or to FDR Presidential Services, had been spent on private bills and not forwarded to insurance coverage carriers to acquire insurance coverage protection, in accordance with investigators.
To conceal the scheme, Rollins issued false Certificates of Insurance, which listed the names of legitimate insurance coverage carriers because the insurance coverage suppliers of the fraudulent insurance policies, investigators say.
In addition to amassing premium funds for insurance policies that had been by no means positioned, Rollins additionally allegedly offered himself as a registered stockbroker and accepted funds for investments from a number of victims. Rollins reportedly collected almost $80,000 from numerous people, together with insurance coverage shoppers, below the guise that he was investing their cash in shares.
Rollins is not licensed as he didn’t renew his license after it expired in March 2014, in accordance with the CDI.
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