MORGANS PLEAD GUILTY

December 25, 2000

The owners of a San Jose, Calif., insurance agency who duped customers out of more than $10 million pleaded guilty Dec. 18 to multiple felony charges in an effort to reduce their prison sentences. Kimberly Morgan, 36, agreed to serve 16 months, while her husband, Robert, 37, agreed to a sentence of 10 years. The couple fled the country earlier this year, hiding out for seven months on an island in the West Indies with their two children and nanny. Both remain in jail on $10-million bail with formal sentencing scheduled for Jan. 31. The Morgans operated ISU Diligent Insurance Agency Inc. in South San Jose for several years.