The agent impersonated a university employee and fraudulently prepared an insurance financing agreement.
The owner of Rosebud County Insurance Inc. was sentenced. He was jailed for four years and three months and ordered to pay $155,436 in restitution for wire fraud and aggravated identity theft for using customer premiums for personal expenses, according to the U.S. District Attorney’s Office. Montana.
Kaylynn Moriah Hagadon, of Forsyth, Montana, ran the scheme from 2020 until approximately April 2023, according to the U.S. Attorney’s Office. She pleaded guilty in August 2023.
Hagadon is accused of collecting premiums but not submitting payments to insurance companies, resulting in her clients being uninsured.
Chief Dull Knife College was defrauded of $91,883 in 2021, according to the attorney’s office. Instead of transferring the school’s tuition to its transportation company, Hagadon kept the money. She then posed as a school employee and fraudulently set up an installment financing agreement, allowing her to pay her college tuition in installments.
However, Hagadon failed to make the instalments. The school’s insurance was canceled in April 2022, but the insurance agent hid the cancellation so she could continue to defraud the school.
In November 2022, Hagadon created a fake insurance policy for the college, which paid the agent $98,893 for the bogus coverage. Because of the agent’s fraudulent behavior, the college remained without insurance coverage from April 2022 to April 2023, according to the attorney’s office.
Hagadon allegedly defrauded other clients in a similar manner, although the amounts were usually less than the amounts paid by the college.
“When we pay our premiums, we expect to have coverage when we need it,” U.S. Attorney Jesse Laslovich said in a statement. “Here, Hagadon’s clients, including the community college, logically believed they had coverage because they paid for it. But Hagadon not only cheated them out of coverage, she stole their hard-earned money and spent it for her own personal use. The good news is that she didn’t get away with it.” The only reason you didn’t is because of the diligent and cooperative work of the Montana State Auditor’s Office, the FBI, and the Rosebud County Sheriff’s Office in investigating this case.
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