BOISE, ID – Charlotte Sheppard of Richfield, Idaho was convicted of two felony counts of insurance fraud, for stealing clients’ insurance premium to pay her personal and business bills and obligations. Ms. Sheppard was sentenced to the Idaho Department of Corrections for 10 years, with five years fixed and five years indeterminate.
Ms. Sheppard was first prosecuted and found guilty in Blaine County for grand theft in 2020. Prior to her prosecution, her employer referred information to the Idaho Department of Insurance for stealing funds from the agency’s fiduciary account. The Department investigated and found that Sheppard had violated Idaho Insurance Code. Concurrent with the court proceedings the Department was taking administrative action to revoke her Insurance License.
In the interim, while awaiting criminal sentencing and administrative penalties, Ms. Sheppard took over management of a second agency in Lincoln County. The Department became aware that she was again misappropriating funds with the new agency. The DOI issued a cease-and-desist order on March 18, 2020, and revoked her license on March 20, 2020.
The Department opened a new investigation and determined that Ms. Sheppard had collected premiums from multiple clients at the second agency but did not apply them to their policies. She diverted the funds for her personal use. Charges were filed in the Fifth Judicial District in Lincoln County, Idaho in October 2020.
“This is one of the most egregious cases I have ever seen,” said Dean L. Cameron, Director of the Idaho Department of Insurance. “Most agents have their clients’ best interests at heart, but Ms. Sheppard is an unfortunate exception. We are grateful to the Lincoln County Prosecutor, Richard Roats, for his assistance with this case and bringing Ms. Sheppard to justice.”
SOURCE: Idaho Department of Insurance
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