An insurance agent will lose her license after state officials said she spent customers’ money on gambling and clothing instead of using it to pay their premiums.
Investigators said Daneile Frydrych, owner of All Star Insurance in South Bend, spent money intended for customers’ home and vehicle policies at casinos in Las Vegas and Michigan City, at clothing and book stores, and at a local adult entertainment store.
“Frankly I think it’s the tip of the iceberg,” attorney Jim Holden, chief investigator for the Indiana Department of Insurance, said during a public hearing in Indianapolis during which some of Frydrych’s customers testified.
Frydrych did not attend the hearing. There was no number under her name in published listings for South Bend and a phone rang unanswered at All Star Insurance.
State Insurance Commissioner Jim Atterholt said he would allow 30 days for additional complaints, after which he would revoke Frydrych’s license. Her license already has been suspended.
Atterholt said he also would order Frydrych to make restitution and pay $285,000 in fines. He said her customers likely lost more than $1 million, counting premium fees and expenses they incurred while uninsured.
Ronda Ankney, an investigator with the state insurance department, said Frydrych had received “at least 100” complaints about All Star. No one spoke on Frydrych’s behalf during the hearing.
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