Insurance agent runs scam on her own customer

From http://www.businessinsurance.com A Carbondale, Colo., insurance agent was nabbed by police after pocketing thousands of dollars in an insurance scheme. Karen Iuele was arrested this month on charges of fraud and felony theft after she allegedly took $6,384 from a customer who was under the impression that Ms. Iuele was securing a new insurance policy, according to the Aspen Daily News. Ms. Iuele, who worked for Aspen, Colo.-based insurance agency Michael Sailor Insurance Inc. during the allegations, helped the victim of her fraud transfer policies from American Republic Insurance Co., which stopped offering policies in Colorado, to Celtic Insurance Co., the Aspen Daily reported. But according to police reports, Ms. Iuele, allegedly beginning in June, solicited “retroactive premium payments” from the victim by having her deposit cash or a cashier’s check into a “secure account” held by Michael Sailor Insurance, the news report said. Needless to say, Celtic never received the payments and was not expecting payment until the end of August. Furthermore, Michael Sailor, owner of the insurance firm, said there was no such account at his agency. “This is not how we do business,” Mr. Sailor told the Aspen Daily. “We do not take cash or cashier’s checks from customers and never will a client be asked to transfer money to a personal account of an employee of this business.” Mr. Sailor was alerted of the alleged fraud in September and subsequently fired Ms. Iuele. Ms. Iuele, who was arrested on Oct. 1 and released on a $5,000 bond, will make her first court appearance Monday to answer to the charges, the Aspen Daily said.   Safeguard your practice and let US Risk help. Contact us for all the programs we  have available to assist you in every way.