Louisiana Agent Arrested for Misappropriation of Insurance Premiums

Deborah Elaine Thomas, of Opelousas, was arrested by the Louisiana State Police Insurance Fraud/Auto Theft Unit on April 21, 2011 on two counts of Unfair Trade Practices, according to authorities.

Thomas and her agency, Thomas & Thomas Insurance Agency LLC, were served by the Department of Insurance Fraud Section Investigators with a summary suspension of both licenses, cease and desist orders, a $5,000 fine notice each and notice of proposed license revocations for alleged forgery and misappropriation of insurance premiums.

Authorities allege Thomas financed premiums on two insurance policies for which the policyholders had paid her in full, resulting in unauthorized misappropriation of funds for personal or business use.

In addition, Thomas forged the signatures on both finance agreements and concealed the fraudulent practice by listing her agency address as the address of the policyholders so that they would not receive correspondence from the finance company and be made aware of her actions, according to authorities.

Department records show that Thomas was issued a Property and Casualty license in April 2009 and Thomas & Thomas Insurance Agency was issued a Property and Casualty license in June 2009, both of which were valid until the time of service.

Thomas has 30 days from time of service to request an administrative appeal or both licenses will be revoked.

Source: Louisiana Department of Insurance Fraud Section