The owners of a San Jose, Calif. insurance agency who duped customers of more than $10 million pleaded guilty Monday to multiple felony charges in an effort to reduce their prison sentences. Kimberly Morgan, 36, agreed to serve 16 months, while her husband, Robert, 37, agreed to a sentence of 10 years. The couple fled the country earlier this year after federal officials began questioning them, hiding out for seven months on an island in the West Indies with their two children and nanny.
Both remain in jail on $10 million bail with formal sentencing scheduled for Jan. 31. At that time, the couple also faces fines of up to $20,000 each, and the court will determine the amount of restitution that Robert Morgan will have to pay. The Morgans operated ISU Diligent Insurance Agency Inc. in South San Jose for several years. Robert Morgan admitted to inflating premium-financing contracts, financing non-existent policies and pocketing the money.
According to court documents, he borrowed money under clients’ names, ostensibly to pay the premiums, instead pocketing the money and creating fake accounts to cover up the fact he was taking hundreds of thousands of dollars from individuals who believed they had invested their savings in annuities.
Topics Fraud
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