Okla. Commissioner Issues Warning on Fake Bond Companies

Oklahoma Insurance Commissioner Carroll Fisher warned citizens of his state who may have done business with Eastern Shores Casualty and Indemnity Co. and Continental Surety Company Ltd. that the companies are unlicensed to sell bonds in Oklahoma. In addition, Fisher said the companies likely are shams with nothing more than a mail box on a South Pacific island and an Internet address.

An Arizona agent is alleged to have been operating the companies by claiming they were off shore entities. In February, Fisher ordered Phoenix-based Diana Greene, with International Bond Source, to stop doing business in Oklahoma.

At the time, it was believed she was mainly targeting used car dealers by selling fraudulent bonds over the Internet. In fact, only a handful of cases involving Oklahoma victims had been identified. Since that time, officials have learned of bonds sold to other types of businesses.

Fisher said Arizona officials have identified more than $1.5 million in unpaid claims across the nation.

“The worst part about this case is that those are only the unpaid claims we know about,” he said. “We believe many people have been duped who may not even know it yet.”

Arizona officials recently indicted Greene on three separate felony counts, in addition to revocation proceedings started earlier against her license. A dozen other states where she is suspected of selling the fraudulent bonds have joined the investigation. Arizona officials have indicated that information developed by Oklahoma investigators was invaluable in their case against Greene.

Officials also believe she may be continuing to operate in Oklahoma via the Internet despite the threat of sizeable fines.

Fisher said people who have contracted with Greene, International Bond Source, Eastern Shores Casualty or Continental Surety Co. or who have been offered coverage since late February may call the Oklahoma Insurance Department’s fraud division toll free at (800) 522-0071 or in central Oklahoma at (405) 521-2828.