Two licensed insurance agents in Tennessee were issued disciplinary action by the Tennessee Department of Commerce & Insurance (TDCI) for their violations of the law.
It was thanks to the months-long efforts of the TDCI’s Insurance Fraud Investigations team that the two agents’ fraudulent activities were brought to light.
“Agents have a fiduciary duty to their clients who place the utmost trust and confidence in their agent to manage and protect their money and property,” remarked Michael Humphreys, TDCI Assistant Commissioner. “The Department will continue to take action against agents who violate this trust. We are making every effort to ensure that consumers can count on licensed agents in Tennessee to act in their best interest. Anything less will not be tolerated.”
Janet F. Leathers had her license revoked by the Department and was fined $176,000 for committing a total of 44 violations of state insurance law. Such violations include the misappropriation and conversion of moneys and property, and engaging in fraudulent and dishonest conduct. The Administrative Law Judge also found that Leathers committed two violations for failure to inform the Department of her previous criminal prosecution.
Previously, Leathers—who was an agent for Blue Cross Blue Shield at that time—was indicted in 2009 for using stolen prescription form pads to create falsified prescriptions for controlled substances using the names of her clients, as well as forging doctors’ signatures.
Marvin Lenard Berry had his license placed on one-year probation and was fined $2,000, with restitution payment for his victims amounting to $433.15. Berry was served disciplinary action due to his misconduct as an appointed agent for Monumental Life Insurance Company.
Back in 2011, Berry misappropriated a total of $443.15 in premiums from two separate victims. He also failed to remit the money to Monumental as premium payments.
