A former Ohio insurance coverage agent was sentenced this month to 5 years of probation for thefts exceeding $1.4 million.
Rhonda Chandler, of the Columbus space, stole and misappropriated funds, together with premiums for pre-need life insurance coverage insurance policies, generally generally known as burial or funeral insurance coverage, in accordance with an investigation by the Ohio Division of Insurance coverage.
The misused funds have been meant to cowl funeral bills and settle belief claims after funeral companies have been supplied, however Chandler diverted the cash for private and enterprise use, impacting 14 Ohio funeral houses serving their prospects’ monetary wants, ODI stated. The insurer that issued the insurance policies has absolutely reimbursed the affected funeral houses, and restitution will likely be directed to the insurer.
“Defending Ohio shoppers is our prime precedence, and this case exhibits our dedication to holding those that abuse the belief of shoppers accountable,” ODI Director Judith L. French stated. “We recognize the involvement of the Ohio Funeral Administrators Affiliation, the Franklin County Prosecutor’s Workplace, and the insurance coverage trade for making certain this particular person was held accountable for her unlawful conduct.”
In line with ODI, Chandler’s fraudulent exercise got here to gentle when a civil lawsuit was filed towards Chandler for failing to supply pre-need funeral funds to a funeral dwelling. Chandler assisted funeral administrators in putting pre-need funeral funds in an insurance coverage or belief product and administered a belief.
When a buyer enters right into a pre-need funeral association with a funeral dwelling, the funds are required to be positioned in an insurance coverage product or a belief. Pre-need funeral funds are funds made upfront for funeral and burial preparations.
Chandler’s insurance coverage license was revoked in 2021 for failing to well timed submit purposes and insurance coverage premiums to an insurer and interesting in fraudulent, coercive, or dishonest practices after figuring out 25 counts of agent misconduct. Chandler was indicted in November 2023 on prices of theft, a second-degree felony, and falsification, a third-degree felony. Chandler initially denied the wrongdoing however later confessed.
Chandler has paid again $350,500 in restitution and was ordered to pay the remaining quantity.
Supply: Ohio Division of Insurance coverage
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