FLINT TOWNSHIP, MI – A former Genesee County insurance agent has been sentenced to prison for embezzling more than $90,000 from her clients and providing them with phony insurance certificates, leading them to believe they had insurance for their homes or cars when they actually didn’t.
Angella Kay Swain, 53, of Flint Township appeared before Genesee County Circuit Court Judge Celeste Bell Tuesday, Nov. 24 and was sentenced to 20 months to 20 years in prison.
Swain’s sentencing follows a plea deal she entered in July in which she pleaded no contest to one count of conducting a criminal enterprise, 11 counts of embezzlement by an agent between $1,000 and $20,000 and one count of using a computer to commit a crime.
Charges were filed in the case by the Attorney General’s office in October 2018 after it was referred to the office by the Michigan Department of Insurance and Financial Services.
“I am grateful for the partnership between my office and the Department of Insurance and Financial Services, as well as the commitment to justice that is clearly shared by all of us involved with this case,” Nessel said. “Embezzlement is a crime my office takes very seriously and we will aggressively pursue justice by enforcing the laws that serve to protect our residents and consumers from fraudulent, predatory actions such as these.”
Between 2011 and 2016, Swain took insurance premiums from at least 34 of her clients and converted the money to her own use instead of remitting the premiums to the insurance companies, according to the attorney general’s office. In many instances, Swain issued her clients false insurance certificates, leading her clients to believe they had homeowners or auto insurance coverage when they did not.
“Ms. Swain’s sentence makes it clear that there is no tolerance for fraud in the Michigan insurance industry, and it should serve as a warning to those who seek to exploit Michiganders,” Department of Insurance and Financial Services Director Anita Fox said in a statement.
Swain was a licensed insurance producer and operated the Swain Agency from 2002 to 2013.
The Department of Insurance and Financial Services took enforcement actions against Swain in 2003, 2006 and 2009. In 2013, the department summarily suspended Swain’s insurance producer license and permanently revoked it in December 2014 for misappropriating client’s premiums, the state said. In 2014, Swain continued to sell insurance without a license while working at her ex-husband’s insurance agency, Select Insurance Agency, the state alleged.
The newly established Department of Insurance and Financial Services Fraud Investigation Unit investigates criminal and fraudulent activity related to the insurance and financial markets and works with the Attorney General and law enforcement to prosecute these crimes. Suspected insurance fraud can be reported to the department by calling 877-999-6442 or by visiting DIFS’ website.
Former insurance agent who stole car and home premiums reaches plea deal in Genesee County
State takes action against Flint cop’s insurance agency
Former Flint cop, ex-wife charged in connection to fake insurance scheme