Madison, Shelby Co. Agents Face $178K in Fines, License Revocation
NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) announces disciplinary actions today against two Tennessee licensees for several violations including the knowing misappropriation and conversion of moneys and property; failure to report criminal prosecution pretrial hearings to the Department; violating laws of the Commissioner; and the use of fraudulent and dishonest conduct in the business of insurance.
The punishments were the result of months of work by TDCI’s Insurance Fraud Investigations team who ensure the protection of Tennesseans by holding accountable licensees who are engaged in unlawful activity.
“Agents have a fiduciary duty to their clients who place the utmost trust and confidence in their agent to manage and protect their money and property” said TDCI Assistant Commissioner for Insurance Michael Humphreys. “The Department will continue to take action against agents who violate this trust. We are making every effort to ensure that consumers can count on licensed agents in Tennessee to act in their best interest. Anything less will not be tolerated.”
Details of the cases include:
Janet F. Leathers.: (Madison, Tenn.) A Final Order, effective December 30, 2015, was issued by an Administrative Law Judge (ALJ) revoking Ms. Leathers’ license and assessing a $176,000 civil monetary penalty as a result of a May 7, 2015 hearing. The ALJ found Leathers to have committed a total of 44 violations of Tennessee insurance law. Specifically, the ALJ found 42 knowing violations for the misappropriation and conversion of moneys and property, and engaging in fraudulent and dishonest conduct. In addition, the ALJ found Leathers to have committed two violations for failure to inform the Department of her criminal prosecution. The violations stemmed from Leathers’ fraudulent conduct during her appointment as an insurance broker for Blue Cross Blue Shield (BCBS) in 2009, which subsequently led to her criminal indictment.
As an agent for BCBS, Leathers used stolen prescription form pads to forge and submit prescriptions for controlled substances using names of her BCBS clients as well as forging doctors’ signatures. The forgeries persisted over a five month period and were found by the ALJ to constitute 42 knowing violations of the law. In 2011 Leathers was criminally indicted for the forgeries, and ultimately received judicial diversion in 2012. She was sentenced to three years of supervised probation, a $2,000 fine, and $5,539.60 in restitution. At no point did Leathers inform the Department of her pending prosecution as required by law. The Final Order can be located here on the Department’s website.
Marvin Lenard Berry: (Shelby County, Tenn.) A Consent Order was finalized, effective March 2, 2016, between the Department and Mr. Berry placing his license on a one year probation, assessing a $2,000 fine, and restitution payment to the victims totaling $433.15. The Consent Order was entered into as a result of Berry’s misconduct as an appointed agent for Monumental Life Insurance Company (Monumental). In 2011 Berry misappropriated collectively $443.15 in premiums from two separate victims and failed to remit the money to Monumental as a premium payment on behalf of the clients. The Consent Order may be located here on the Department’s website.
Tennesseans are encouraged to visit the Department’s website where they can review their insurance contracts and agent relationships as well as inspect disciplinary actions and license verification.
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