Arkansas Insurance Commissioner Jay Bradford announced the arrest of Rickey Lynn Warren of Hensley, a former a licensed insurance agent charged with insurance fraud.
Warren is accused with taking checks totaling $2,125 for workers’ compensation insurance, as well as general liability insurance from the owner of Red Construction Co. of Alexander, Ark., and cashing the checks without purchasing the insurance.
The insurance department reported that on Feb. 13, 2008, Warren sold a general liability and a workers’ compensation policy to Andres Gaytan that was to have the term dates of Feb. 13, 2008, to Feb. 13, 2009. Gaytan was given a “Certificate of Liability Insurance” from Commerce and Industry Insurance Company with a 12-digit policy number. The certificate reflected the workers’ compensation policy carried an 8-digit number and term dates. When Gaytan contacted the company to question incorrectly stated term dates, he was informed that the policy numbers did not correspond to those used by the insurance company and that it had no record of receiving payment for any policies.
Following an investigation into the matter by the Arkansas Insurance Department and a subsequent hearing on May 18, 2009, at which Warren failed to appear, Rickey Lynn Warren was ordered to make full restitution to his client and assessed a penalty of $5,000 for each violation of the Arkansas Insurance Code. His penalties total $55,000.
“I find the acts of Rickey Warren to be especially egregious as he appears to have targeted a segment of the community whose livelihood depends upon being able to acquire specific types of insurance in order to conduct their business,” Bradford stated.
Based upon testimony given at the hearing and other information revealed during the investigation, it appears Warren has been targeting the Hispanic population in particular.
Warren was arrested by Curtis Briggs, an officer in the Department’s Criminal Investigation Division, and is charged with Theft of Property which is a Class C felony.
Source: Arkansas Insurance Department