Michigan Fines Agent $25K, Revokes License in Auto Insurance Fraud Case

A Michigan agent has been fined $25,000 and had his insurance license revoked after an investigation revealed he had been creating and selling fake auto insurance certificates, the state’s insurance regulators say.

The Michigan Department of Insurance and Financial Services (DIFS) said it began an investigation after receiving a complaint alleging Dillen Leonard of Flint, Michigan, was preparing, issuing and delivering fake insurance certificates to customers at the Flint-based agency where he was employed.

DIFS said its investigation revealed that Leonard delivered fake certificates of insurance to at least 29 individuals. Each certificate was produced at the agency he worked for, on a document formatted to look like a legitimate insurance certificate with a false inception date and false expiration date.

DIFS also found that each customer knowingly bought fake insurance from Leonard in order to register a vehicle with the Michigan Secretary of State.

According to the order issued by DIFS Director Patrick McPharlin, Leonard served as a designated responsible licensed producer for Advasure Insurance Agency from Jan. 4, 2016, to Aug. 1, 2016. The DIFS investigators found that Leonard produced the false certificates of insurance from July 5, 2016, to July 28, 2016. “Each certificate was produced at Advasure on an Everest National Insurance Company formatted certificate…,” the order states.

Each customer was charged “approximately $100-$125 cash for a false certificate of insurance,” the order states. Leonard placed the money in the agency’s cash drawer and took the money home at the end of the day, according to the DIFS.

This case has been referred to the DIFS’ Anti-Fraud Unit for further investigation.

A complete copy of the order can be found on the DIFS website.

Source: Michigan DIFS