A former Ohio insurance agent was sentenced this month to five years of probation for thefts exceeding $1.4 million.
Rhonda Chandler, of the Columbus area, stole and misappropriated funds, including premiums for pre-need life insurance policies, commonly known as burial or funeral insurance, according to an investigation by the Ohio Department of Insurance.
The misused funds were intended to cover funeral expenses and settle trust claims after funeral services were provided, but Chandler diverted the money for personal and business use, impacting 14 Ohio funeral homes serving their customers’ financial needs, ODI said. The insurer that issued the policies has fully reimbursed the affected funeral homes, and restitution will be directed to the insurer.
“Protecting Ohio consumers is our top priority, and this case shows our commitment to holding those who abuse the trust of consumers accountable,” ODI Director Judith L. French said. “We appreciate the involvement of the Ohio Funeral Directors Association, the Franklin County Prosecutor’s Office, and the insurance industry for ensuring this individual was held accountable for her illegal conduct.”
According to ODI, Chandler’s fraudulent activity came to light when a civil lawsuit was filed against Chandler for failing to provide pre-need funeral funds to a funeral home. Chandler assisted funeral directors in placing pre-need funeral funds in an insurance or trust product and administered a trust.
When a customer enters into a pre-need funeral arrangement with a funeral home, the funds are required to be placed in an insurance product or a trust. Pre-need funeral funds are payments made in advance for funeral and burial arrangements.
Chandler’s insurance license was revoked in 2021 for failing to timely submit applications and insurance premiums to an insurer and engaging in fraudulent, coercive, or dishonest practices after identifying 25 counts of agent misconduct. Chandler was indicted in November 2023 on charges of theft, a second-degree felony, and falsification, a third-degree felony. Chandler initially denied the wrongdoing but later confessed.
Chandler has paid back $350,500 in restitution and was ordered to pay the remaining amount.
Source: Ohio Department of Insurance
Topics
Agencies
Fraud
Ohio
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