Oklahoma Insurance Commissioner John D. Doak has issued a cease and desist order to a former insurance agent in Cushing.
The Oklahoma Insurance Department reported that investigators discovered Mark Lauderdale, whose insurance license expired four years ago, continued collecting payments for insurance policies, but failed to forward all of the money on to insurance companies. The scheme left some of his clients without coverage for years.
“Scams like this are extremely upsetting,” said Doak. “We have people making their premium payments like they’re supposed to, thinking they’re protected from financial disaster, but in reality, they’re not. If a fire burns their home to the ground, they’ll be out on the street because the insurance policy they are paying for doesn’t actually exist. This is completely unacceptable.”
Lauderdale, whose clients include a small town in Payne County and a senior citizen activity center, hasn’t had a valid insurance license since May 31, 2013. Investigators found he created false documents to convince his clients that they were insured, when in fact they were not. Despite not having a license, Lauderdale advertised his services in the Cushing phone book. He told investigators he had between 300 and 400 active clients.
Lauderdale was fined $5,000 in 2003 for misappropriation of insurance premiums. His license was suspended on May 31, 2013 when he failed to submit an application for renewal.
Source: Oklahoma Insurance Department
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