MAN ACCUSED OF FAKING SURETY BOND

Oklahoma Insu-rance Commissioner Kim Holland issued a Cease and Desist Order to a Seminole businessman suspected of writing his own surety bonds to cover costs associated with plugging abandoned oil and gas wells.

The action resulted from a complaint referred to the Oklahoma Insurance Department by the Oklahoma Corporation Commission. The complaint alleges Ronald Kent Springer provided the commission a surety bond underwritten by G.C.S. Financials Inc. When the commission attempted to verify the surety bond, all mail was returned and no telephone calls were completed.

Springer provided to the Oklahoma Insurance Department a copy of a check he claimed was proof of his purchase of a surety bond. But investigations by the department revealed the check was never processed and the account number on the check had not been active for five years.

“This man had no authorization to engage in insurance business in Oklahoma and has misrepresented the existence of insurance policies. His actions were hazardous to public safety,” Holland said.

If Springer violates the cease and desist order, Holland may impose a penalty of $25,000 for each act of violation or force him to pay back Oklahoma residents damaged by the violation.

The Oklahoma Insurance Department is not aware of any other false bonds sold to other companies or individuals by Springer.

Topics Oklahoma