Montana Brokerage Owner Admits to Defrauding Customers
Kileen Moria Hagadone, 57, owner of Rosebud County Insurance Inc., pleaded guilty to wire fraud and to aggravated identity theft. Hagadone faces a maximum of 20 years in prison, $250,000 fine and three years of supervised release on the wire fraud crime and a mandatory minimum of two years in prison, a $250,000 fine and one year of supervised release on the aggravated identity theft crime.
A sentencing date will be set before a U.S. District Judge. Hagadone was released pending further proceedings.
The government alleged in court documents that Hagadone owned and operated Rosebud County Insurance, an insurance brokerage business. Hagadone reportedly received insurance payments from customers but failed to send the funds to insurers. Instead, Hagadone misappropriated the money for personal expenses. The scheme reportedly ran from about 2020 until April 2023.
The government further alleged that one of the victims was the Chief Dull Knife College of Lame Deer, which engaged Hagadone to find an insurance policy for the college. Hagadone did so, and the negotiated premium for the policy in November 2021 was $91,883.
The college reportedly paid Hagadone the full amount. Instead of sending the premium to the insurer, Hagadone contracted to finance the college’s insurance premium with a premium financing company and forged the signature of a college representative, enabling Hagadone to keep most of the payment without immediately cancelling the policy. Eventually, Hagadone embezzled too much money from her business trust account and could not pay the financing payments, and by April 2022, the college’s insurance was terminated. Hagadone concealed this from the college and falsely represented that the college was insured, according to the U.S. Attorney’s Office.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case. The Montana State Auditor, Commissioner of Securities and Insurance, FBI and Rosebud County Sheriff’s Office conducted the investigation.
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