Insurance Fraud Allegations Lead to Suspensions, Arrest for Arkansas Agency Owners in 2 Separate Cases

May 7, 2018

Arkansas has suspended the insurance licenses of one agency owner and arrested another agency owner on charges of insurance fraud.

The Arkansas Insurance Department suspended the licenses of Berry Bishop and Alliance Insurance Group of Arkadelphia alleging premium financing fraud totaling more than $1 million. An order dated April 17 alleges that Berry and Alliance Insurance defrauded the Bank of Prescott of that amount by forging at least 17 premium financing agreements. Information from four existing customers was allegedly used to create “non-existent insurance policies for collateral for the premium financing agreement,” the AID order states.

Additionally, the order alleges that about $1.7 million in insurance premiums received from customers was converted for personal use, and Alliance Insurance Group does not have the funds to pay those customers back.

According to the insurance department, Bishop no longer controls or manages Alliance Insurance Group. The order states that “it is unclear under what authority the remaining employees are making managerial and financial decisions.”

Arkansas Business reported that the agency has 21 employees and was in the process of being sold when the Commissioner’s Order was issued.

Joshua Eric Casada

In a separate action, Joshua Eric Casada, owner of the Little Rock-based Casada Insurance Group, surrendered in mid-April on charges of felony insurance fraud, theft and forgery following an investigation by the AID’s Criminal Investigation Division.

Casada, of Pine Bluff, is accused of submitting 11 fictitious and fraudulent premium finance agreements totaling $211,292.70 to the Imperial Premium Finance Corporation (IPFS). The agreements requested premium financing on fradulently produced insurance policies.

The money was allegedly deposited in the Casada Insurance Group bank account.

The insurance licenses for Casada and the Casada Insurance Group were revoked in December 2017.