Troopers with the Lafayette Field Office of the Louisiana State Police Insurance Fraud Unit recently arrested a Ville Platte insurance agent for unfair trade practices.
In October 2010, troopers received a criminal complaint about 65-year-old Melvin J. Lavergne of Ville Platte, La. The complaint alleged that Lavergne, the owner and agent of Lavergne’s Insurance Agency located in Ville Platte, had failed to send insurance premiums collected from customers to the insurance companies.
Lavergne allegedly failed to submit more than $1,160 in insurance premiums for four separate customer accounts resulting in seven cancellation notices being issued.
The cancellations affected the customers’ vehicle registration as well as their driver’s license status with the Office of Motor Vehicles, the LSP said. Based on the investigation troopers were able to obtain a warrant for Lavergne’s arrest.
Lavergne is charged with committing unfair trade practices. The Department of Insurance Fraud Section Investigators served Lavergne with a summary suspension of his license, a cease and desist order, a $4,500 fine notice and notice of proposed license revocation for alleged misappropriation of insurance premiums.
Lavergne was issued a Property and Casualty license in April 1977, which expired in April 2010. He has 30 days from time of service to request an administrative appeal or the above actions will become final.
Source: Louisiana State Police; Louisiana Department of Insurance
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