Insurance Agent Who Exploited Minority Customers Sentenced to 3 Years in Prison

A former Delaware insurance agent has been ordered to serve three years in prison after pleading guilty to three counts of felony theft involving the misappropriation of clients’ funds, the Delaware Department of Insurance (DOI) reported.

Zenaida Nieves-Cordero was also ordered to have no contact with her victims and pay $625,226.75 in restitution.

According to prosecutors, the majority of Nieves-Cordero’s clientele were Spanish-speaking residents of Kent and Sussex Counties. The DOI said it believes she exploited their fears of engaging with law enforcement and thus being less likely to report her misconduct. Eventually some did come forward, enabling investigators and the Department of Justice to hold Nieves-Cordero accountable for unexplained withdrawals and missing funds.

DOI said its investigation into Nieves-Cordero’s business practices at her former agency, Apple Insurance Inc., in Georgetown, uncovered a pattern of unauthorized withdrawals from clients’ bank accounts. These consumers had entrusted Nieves-Cordero to withdraw funds solely for the purpose of paying their insurance premiums; however, prosecutors showed that she diverted hundreds of thousands of dollars for her personal use over a period of several years.

Her property/casualty agency that sold auto, home, renters, business and other lines, is no longer in operation. At the request of Insurance Commissioner Trinidad Navarro, the state’s Court of Chancery placed Apple under a conservatorship, which allowed the state to step in and complete an orderly wind-down and permanent closure of the business.

Her license to sell or manage insurance has been revoked, and she is currently serving a three-year prison sentence.

“This was one of the most severe breaches of trust by an insurance agent that our Department has ever encountered,” said Navarro. “Ms. Nieves-Cordero exploited her position and targeted a community that placed their confidence in her.”