Local Insurance Agent arrested after ten month insurance fraud investigation

The WFPD Financial Crimes Unit Insurance Fraudalongwith the Texas Department of Insurance have conducted a ten month investigation involving independent Insurance agent, Shawn Chamber, white male, DOB 12/03/66. The investigation led to criminal charges of Texas Penal Code 32.45 Insurance Fraud ($25,000 bond and related charges of Texas Penal Code 32.45 Misapplication of Fiduciary Property F-2 ($100,000 bond) and include the surrender of his Insurance Licenses. Chambers was arrested in Clay County yesterday and was released from the Clay County Jail after posting bond this afternoon. The investigation led to the identification of twenty-five victims and businesses.

The summary investigation is as follows:

On 11/05/2013 an investigation report of Insurance Fraud was filed with the Wichita Falls Police Department regarding Shawn Chambers -SIG Insurance Representative, 2910 Kemp. The report alleged that Chambers misapplied the premiums given to him for insurance coverage. The premiums paid to Chambers were not forwarded to SIG or its affiliate insurance companies for coverage. The misapplication by fiduciary resulted in uninsured coverage, damages, and lost wages.

Detective Tony Ramirez, along with the Texas Department of Insurance. Sgt. Robert Parchman (Fraud Investigator) were assigned the case and conducted a joint investigation. Investigators solicited the cooperation of Missy Pollard- SIG Insurance President (Bryan Texas). Ms. Pollard performed an audit of known clients of Shawn Chambers. The audit resulted in the discovery of 25 clients with a pattern of non-payment insurance coverage. The non-payment pattern is indicative of fraud by an independent agent. Shawn Chambers was employed as an independent agent of SIG and its affiliates. The audit led to the discovery that victim clients paid money to Chambers without the receipt of coverage.

Bank records corroborated that Shawn Chambers converted the money into his bank account for his own personal use.

SIG / Headquarters took the policies and “made whole” (provided insurance coverage) or repaid the premiums to the victims to reconcile the damages done by Shawn Chambers. SIG President M. Pollard reported that SIG identified and reimbursed a total of $106,296.59.

The investigation led to charges that Shawn Chambers acting in a fiduciary capacity knowingly, intentionally or recklessly misapplied property entrusted to him in a manner that involved substantial risk of loss to the victims, in the form of $106,296.59, a Second Degree Felony.

The primary investigation led to the discovery of a second investigation and complaint filed by the Hartford. The investigation showed that Shawn Chambers, Insurance agent, sold an insurance policy to an individual. Chambers filed a claim a claim on behalf of the individual for damages reporting that it occurred on 12/25/12.

The claims adjuster noted the damage, It was learned that the trailer was not covered during the claim period. The claim was denied due to dropped coverage for non-receipt of payment.

On 3/01/2013 Shawn Chambers re-filed the same claim, backdating the damage to 10/15/12 to coincide with a date coverage was in place. The adjuster assigned was the same adjuster and noted the claim was for the previously filed claim. The report led to PC 35.02 Insurance Fraud, a state jail felony.

The case report will be filed in Wichita County under the direction of Asst. D.A. Tony Bates. Any additional victims are asked to contact the Wichita Falls Police Department or the agency in their local jurisdiction.

 

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