Louisiana Agent Fined $100K for Alleged Misappropriation of Premiums

A Deville, La., insurance agent has been accused of attempting to defraud insurers by submitting false business and receiving more than $127,000 in commissions.

Robert Lee Daniel III, 29, was served on March 18 by the Department of Insurance Fraud Section Investigators with a summary suspension of his license, a cease and desist order, a $100,000 fine notice and notice of proposed license revocation for alleged misrepresentation, forgery and providing false information on a producer license application.

He was arrested by the Louisiana State Police Insurance Fraud/Auto Theft Unit on January 5 and charged with Insurance Fraud and theft. He was then arrested again on March 16 by the Rapides Parish Sheriff’s Office for insurance fraud.

The insurance department reported that Daniel was terminated for cause from one insurance company after it was discovered he established bogus groups for payroll rates, submitted bogus business and attempted to pay premiums from his personal funds resulting in unearned commissions totaling $127,488. He allegedly wrote and signed 261 phony insurance applications on individuals and 11 phony insurance applications on companies. The insurance company was able to recover $29,365.

He was terminated for cause from a second insurance company after it was discovered Daniel submitted at least 15 fraudulent applications for health insurance to the company. All of the “clients” who applied for insurance through Daniel appear to be fictitious, the LDI said. Because of this activity, Daniel was paid approximately $30,000 in unearned commissions, of which the company was able to recover approximately $2,000.

Daniel also lied about his previous criminal background on his producer license application with the Louisiana Department of Insurance.

Department records show that Daniel was issued a life insurance license and an Accident and Health license in May 2009. He has 30 days from time of service to pay his fine and request an administrative appeal.

Source: Louisiana Department of Insurance