Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Newton Falls Agent Among Top Ohio Insurance Actions
COLUMBUS, Ohio -- A Newton Falls woman’s failure to pay customer claims in a timely manner has landed her among the top fraud and enforcement cases for the Ohio Department of Insurance last year. Agent Pamela Priddy last year was assessed a $35,000 civil penalty and a $15,000 administrative fee.
During the calendar year, the department processed 7,274 allegations of agent misconduct and insurance fraud, initiated 2,310 investigations, identified more than 700 civil and criminal violations of Ohio insurance law, took administrative action against 167 insurance agents and agencies, assessed $134,900 in fines and referred 71 individuals for prosecution, according to Lt. Gov. Mary Taylor, director of the department.
“The Ohio Department of insurance is aggressively fighting insurance fraud to protect consumers and our competitive insurance market,” Taylor said. “We are working closely with law enforcement to bring offenders to justice while raising awareness about the consequences of committing this serious crime.”
Priddy, owner of two third-party administrator companies, ranked second on the list of enforcement actions after an investigation determined that she failed to pay clients' claims in a timely manner and withheld administrative charges from claim funds.
The top spot in the enforcement category went to Willard Lee of Mansfield in Richland County, after an investigation revealed he had misappropriated approximately $1.1 million from several clients by withdrawing money from their annuities. His insurance license was revoked.
In the category of fraud, the No. 1 case is a scheme by former title insurance agent Steven Connolly of Copley in Summit County. A joint department and FBI investigation determined Connolly diverted funds from property transactions to his personal bank account. A judge assigned to the U.S. District Court of Northern Ohio ordered Connolly to serve five years in federal prison, three years of post-release control and pay $1 million in restitution.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.