Ark. Agent Pleads Guilty to Insurance Fraud

Arkansas Insurance Commissioner Julie Benafield Bowman reported that Carolyn Dixon, the owner of Dixon Insurance in Pocahontas, entered a negotiated plea of guilty to two counts of Insurance Fraud (Class D felony) and one count of Theft by Deception (Class A misdemeanor) in Randolph County Circuit Court on Oct. 30, 2006.

Dixon was sentenced to twelve months probation and ordered to pay $2,336.50 in restitution, a $500.00 fine, a $250.00 Public Defender’s fee, and $150 in court costs. The plea was negotiated by Richard Castleman, the Randolph County deputy prosecutor.

Dixon was accused of altering declaration pages, invoices, and other documents provided to clients to falsely reflect higher charges than were actually charged by the insurance broker, carriers, and finance companies in order to charge her clients higher fees.

In addition, she was accused of filing an inflated claim with her insurance carrier for repairs to her office and of knowingly employing a person convicted of a felony involving dishonesty in her insurance business without the written consent of the Insurance Commissioner as required by law.

Arkansas Insurance Department Criminal Investigation Division Investigator Jacquie Harper successfully investigated Dixon. The department currently has seven investigators who are dedicated to investigating insurance fraud.

If you know or suspect an instance of insurance fraud, you can contact the division at its toll free hotline (866) 660-0888. To learn more about the Criminal Investigation Division, visit its Web site at www.fightfraud.arkansas.gov.

Source: Arkansas Insurance Department