Virginia Agent Arrested for Allegedly Embezzling Premium Payments

Virginia authorities announced a local insurance agent is facing a handful of federal charges related to fraud.

Graham Hutson Messer, 32, of Bremo Bluff, Va., was charged in a sealed indictment returned Sept.12, 2012 and unsealed last week following the defendant’s arrest. He has been charged with 13 counts of mail fraud.

According to the indictment, Messer operated as an independent agent offering insurance products for sale to clients in Virginia. He purported to sell insurance offered by a number of different insurers, including but not limited to: the Farmers Insurance group of companies, Chartis Inc., Nautilus Insurance Group, Granite State Insurance Company and Main Street America Group.

It is alleged in the indictment that Messer would instruct his clients to send payments for insurance premiums directly to him. The defendant told his clients that he would then remit the payments to the insurers. However, according to the indictment, Messer embezzled those funds for his own, personal use, never sending them to the insurers, while also deceiving his clients into believing they had insurance coverage.

If convicted, the defendant faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000 for each mail fraud charge.

The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department, the Virginia Bureau of Insurance and the Charlottesville City Police Department.