A former Delaware insurance agent has been sentenced to three years in prison after pleading guilty to three felony theft charges involving the misappropriation of client funds, according to the Delaware Department of Insurance.
Zenaida Nieves-Cordero was accused of making unauthorized withdrawals from clients’ bank accounts while operating Apple Insurance Inc. The Department said consumers had authorized Nieves-Cordero to withdraw money to pay insurance premiums, but investigators found that she diverted hundreds of thousands of dollars for personal use over several years.
The investigation began after the Department received multiple consumer complaints involving unexplained withdrawals and missing funds.
According to the Department, many of Nieves-Cordero’s clients were Spanish-speaking residents of Kent and Sussex counties. The Department said it believes she deliberately targeted members of this community because some victims might have been reluctant to contact law enforcement. Officials credited consumers who came forward with helping investigators uncover the activity and pursue the case.
Insurance Commissioner Trinidad Navarro also obtained a Court of Chancery conservatorship over Apple Insurance and Nieves-Cordero’s insurance operations to oversee an orderly wind-down of the business.
After the conservatorship was approved, investigators found that Apple Insurance’s known bank account had already been emptied and that Nieves-Cordero continued accessing funds through previously undisclosed accounts, according to the Department.
Navarro described the case as one of the most serious breaches of trust involving an insurance agent that the Department has encountered. He said Nieves-Cordero abused her position and thanked the consumers who reported the misconduct.
In addition to serving three years in prison, Nieves-Cordero will be subject to additional probation after her release. She was ordered to have no contact with the victims and to pay $625,226.75 in restitution.
The case was investigated by the Delaware Department of Insurance and referred for criminal prosecution to the Delaware Department of Justice.
Information for this article was provided by Delaware Department of Insurance. Views and claims expressed in this article are those of the source company and do not necessarily reflect the views of AgencyEquity.com. This article may have been edited with the help of AI.
