Producer Ordered to Cease and Desist Due to Grand Theft
- March 26, 2020
Lincoln County insurance producer ordered to cease and desist
BOISE, ID – The Director of the Idaho Department of Insurance issued an Order to Cease and Desist against Charlotte Jane Sheppard of Lincoln County. On March 6, 2020, a Hearing Officer found that Ms. Sheppard violated Idaho Code § 41- 1016(1)(d) and (h) on numerous occasions and issued a preliminary order revoking Ms. Sheppard’s Idaho insurance producer license and imposing a $51,000 fine.
The preliminary order will become final as of the close of business Friday, March 20, 2020. Ms. Sheppard was also charged with grand theft in the Fifth Judicial District Court in Lincoln County. On March 9, 2020, she entered a plea of guilty, which was accepted by the District Court, and is awaiting sentence.
A sentencing hearing has been set for May 19, 2020. Based on information that Ms. Sheppard was continuing to transact insurance and was using premium funds in her agency’s fiduciary account to pay personal expenses, the Department of Insurance ordered Ms. Sheppard to stop accepting any payments for insurance premiums or other like payments and to cease all insurance business within the state of Idaho.
The order further directs insurers to cease accepting insurance business from Ms. Sheppard and directs the bank at which the fiduciary account is held to prevent Ms. Sheppard from accessing and removing premium funds.
“This is one of the most egregious cases I have ever seen,” said Director Dean Cameron. “Most agents do an excellent job caring for their clients, having their best interests at heart. Ms. Sheppard is an unfortunate exception, putting her financial needs ahead of her clients.”