Flint ex-insurance agent sentenced in embezzlement case
A former Genesee County insurance agent was sentenced to prison Tuesday for embezzling more than $90,000 from her clients, the Michigan Attorney General's Office said.
Angella Kay Swain appeared in Genesee County Circuit Court and faces at least 20 months behind bars up to 20 years.
The Flint resident had pleaded no contest to one count of conducting a criminal enterprise, 11 counts of embezzlement by an agent between $1,000 and $20,000 and one count of using a computer to commit a crime, investigators said in a statement.
Authorities allege that between 2011-16, "Swain took insurance premiums from at least 34 of her clients and converted the money to her own use instead of remitting the premiums to the insurance companies," according to the release. "In many instances, Swain issued her clients false insurance certificates, leading her clients to believe they had homeowners or auto insurance coverage when they did not."
The Attorney General's Office filed charges in October 2018 after the Michigan Department of Insurance and Financial Services referred the case.
The department had previously cited Swain, who operated an agency for more than a decade, in 2003, 2006 and 2009, officials said Tuesday.
The Department of Insurance and Financial Services summarily suspended her insurance producer license in 2013 and later permanently revoked it for misappropriating clients’ premiums, the statement said.
Swain, 53, allegedly continued to sell insurance without a license while working at her ex-husband's firm, Select Insurance Agency.
“Ms. Swain’s sentence makes it clear that there is no tolerance for fraud in the Michigan insurance industry, and it should serve as a warning to those who seek to exploit Michiganders,” said Anita Fox, director of the Department of Insurance and Financial Services.
Swain is scheduled to start serving her sentence on Jan. 11 and must pay about $90,223 to 34 victims. She paid $12,000 of that amount on Monday, state officials said.
“Embezzlement is a crime my office takes very seriously and we will aggressively pursue justice by enforcing the laws that serve to protect our residents and consumers from fraudulent, predatory actions such as these,” said Michigan Attorney General Dana Nessel.