Outside of Florida
INSURANCE AGENT CHARGED WITH SELLING PHONY BONDS
An insurance agent is facing
up to 75 years in prison on charges that she sold phony performance bonds and
misappropriated more than $150,000 in insurance premiums from at least a dozen
Jody Young, 42, owner of Young Agency, Inc., formerly located at 9731 SW 11th
St., Pembroke Pines, turned herself in this morning to investigators with the
Department of Financial Services, Division of Insurance Fraud. She was booked
into the Broward County Jail on charges of organized fraud, diversion or
misappropriation of insurance premiums and uttering forged instruments. Bond is
set at $35,000.
The fraud division's investigation determined that, from January 2000 through
July 2003, Young accepted insurance premiums for performance bonds from at least
12 construction companies and did not forward the premiums to the insurance
carriers. The insurance carriers were Cumberland Casualty and Surety Company,
XL Surety Insurance Company and Westfield Insurance Company.
In each instance, investigators said, Young received the insurance premiums from
the construction companies and either deposited the funds into one of her bank
accounts or cashed the checks. Three times Young allegedly forged bond
documents and issued performance and payment bonds without the carriers'
authorizations. Investigators estimate that Young diverted or misappropriated
at least $150,000 in premiums.
Young relocated her business last year to Lake Placid, where she currently
If convicted, she faces a statutory maximum of up to 75 years in state prison.
The Broward County State Attorney’s Office is prosecuting the charges.
The Department of Financial Services, Division of Insurance Fraud, investigates
various forms of fraud in insurance, including health, life, auto, property and
workers’ compensation insurance. Anyone with information about this case or
another possible fraud scheme should call the department’s Fraud Hotline at
1-800-378-0445. A reward of up to $25,000 may be offered for information
leading to an arrest and conviction.