A Minnesota insurance agent has been charged with client theft of approximately $524,000, the U.S. Justice Department says.
On Nov. 18, U.S. Attorney Erica H. MacDonald reported that John David Paulson, 56, is under federal indictment, charged with two counts of mail fraud.
According to the allegations in the indictment: “Paulson owned and operated the David Paulson Agency Inc., an independent insurance agency located in Wadena, Minnesota. Between 2011 and 2018, Paulson engaged in a scheme to defraud by stealing money he collected from his clients for their insurance premiums.
“As part of the scheme, Paulson provided fake invoices to his clients that fraudulently inflated the amount of money they owed to their insurance companies. Instead of paying over the premiums to the insurance companies, Paulson used much of his clients’ money for his own purposes, including paying his home mortgage and personal credit card bills. Paulson’s scheme left his clients owing large amounts to their insurance companies or without insurance policies.”
This case was investigated by the Minnesota Commerce Fraud Bureau and the United States Postal Inspection Service. The Wadena County Sheriff’s Office also assisted with the investigation. Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Paulson will make his initial appearance in U.S. District Court before a Magistrate Judge at a later date.
Source: U.S. Attorney’s Office, District of Minnesota
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