Former insurance agent charged in premium thefts
- August 08, 2018
Former insurance agent charged in premium thefts, leaving clients at risk
OLYMPIA, Wash. – Former insurance producer Donald W. Morgan, 67, of Stanwood, pleaded not guilty in Snohomish County Superior Court to two counts of first-degree theft and two counts of second-degree theft on July 31. Charges were filed after an investigation by Insurance Commissioner Mike Kreidler’s Criminal Investigation Unit (CIU).
Kreidler revoked Morgan’s insurance producer license in March 2016 for misappropriating clients’ insurance premiums worth more than $203,000. He operated an insurance agency that sold commercial insurance policies to businesses. The investigation revealed he kept some insurance premiums that his clients paid him rather than remitting the money to the insurance companies, causing the clients to be uninsured.
Victims in Snohomish County included early learning centers, an architectural firm and premium finance companies. Morgan acquired loans from premium finance companies on behalf of clients without their knowledge.
“This was a particularly egregious case of insurance fraud,” said Kreidler. “Insurance producers are in a position of trust, and Mr. Morgan flagrantly violated that trust and put small businesses in jeopardy.”
A pre-trial hearing for the Snohomish County charges is scheduled for Aug. 24, and a trial is set for Oct. 19.