La. Agent Arrested, License Suspended on Felony Theft Charges Involving Misappropriation of Premiums

A Mandeville, Louisiana insurance producer (agent) was shut down and booked on charges of felony theft and insurance fraud involving
misappropriation of premiums, Insurance Commissioner Robert Wooley announced.

Allen James Harrison, 44, was taken into custody at the Mandeville Police Department and booked for alleged felony theft and insurance fraud involving misappropriation of insurance premiums. Department of Insurance Fraud Unit investigators served Harrison with a Cease and Desist order and a summary suspension of all his insurance licenses at that time. The joint operation was part of a team effort of the Department of Insurance and Mandeville Police Department.

The C&D states that Harrison allegedly kept in excess of $27,000 in
premiums rather than sending them to the insurance company to purchase insurance for unsuspecting policyholders or prospective policyholders. The total figure is estimated to be considerably higher. The C&D prohibits him from continuing to engage in any activity relating to the business of insurance.

Department of Insurance records show that Harrison received a life & health insurance license in 1995, a property & casualty license in 1996, an auto club license in 1997 and an agency license (MIR Insurance Agency) in 2000. The agency license expired in May 2003 and Harrison’s auto club license expired in 1998, but the other two remained active until they were suspended in the last week. Addresses listed for him include PO Box 189, 267 West
Causeway Approach and 720 Willow Oak Lane – all in Mandeville.

“There is so much more at stake in a case like this than the dollar amount involved. The C&D covers 26 separate cases where people paid their money in good faith and went on about their lives, thinking they had insurance coverage that wasn’t there. In at least two cases, individuals found out they did not have insurance only when they made a claim on a nonexistent policy. We are continuing our investigation to determine whether there may be others who were also defrauded in this way,” Wooley said.

Policyholders who have bought policies or conducted other insurance business, such as paying premiums, with Allen James Harrison and/or MIR Insurance Agency should call their insurance company to verify their coverage.