A former Minot, N.D. insurance agent has been sentenced to prison and ordered to pay nearly $1.2 million in restitution for wire fraud.
Alan Henning, 58, pleaded guilty on Aug. 24, 2011, to charges that he diverted premiums for his own use, among other things.
From January 2004 through November 2010, Henning was employed as an insurance agent and general business manager with West McLean County Mutual Insurance Co. in Minot, according to the U.S. Attorney’s Office for the District of North Dakota.
Henning diverted funds from premiums, created false or fraudulent policy claims and received unauthorized loans against company owned certificates of deposit, according to federal officials.
He would then wire the funds to various individuals located in China, South Africa, Malaysia, Greece and the United Kingdom.
This case was investigated by the United States Postal Inspection Service, North Dakota Insurance Department, North Dakota Insurance Commission Fraud Unit, and Department of Homeland Security (DHS), Homeland Security Investigations (HSI).
He was sentenced on Jan. 12, 2012, by U.S. District Judge Daniel L. Hovland to four years and three months in federal prison, to be followed by five years of supervised release. Henning was ordered to pay restitution of $1,175,713.60 and special assessments of $300 to the Crime Victim’s Fund.
Henning’s license to conduct insurance business was revoked by North Dakota Insurance Commissioner Adam Hamm last year.