Former New Hampshire Insurance Agent Sentenced to Prison

May 20, 2009

A New Hampshire state employee has been sentenced to two years in federal prison and pay back more than $164,000 to clients she defrauded in her previous job as an insurance agent.

Raye Ellen Douville of Bedford, who had pleaded guilty to insurance fraud in January, had been working at the Department of Employment Security for five years. She filed unemployment claims. Earlier this year, Gov. John Lynch had called for her suspension, which eventually happened.

Prosecutors said from 2001 to 2003, Douville, then known as Raymond Douville, misappropriated the funds that were supposed to pay the insurance premiums, mostly trucking companies. That left her clients uninsured, but still obligated to pay. She was indicted in August.

Douville apologized to the victims in court on Monday.

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