New Orleans Insurance Producer Suspended

January 6, 2005

Louisiana Department of Insurance Fraud Unit investigators shut down the insurance business of a New Orleans producer for charges related to her work with the Orleans Parish Public School System, Insurance Commissioner Robert Wooley announced.

Investigators served Lillian Smith Haydel, 47, business address 1010 Common Street, New Orleans, with a cease and desist order and summary suspension of all insurance licenses, which prohibits her from conducting any kind of insurance business in Louisiana.

According to the department, the C&D states, in part, that Haydel paid kickbacks to an insurance manager of the Orleans Parish Public School System from 1997 through 2001 in connection with obtaining insurance contracts for New Orleans public entities, including the Orleans Parish School Board, from 1997 through 2001. It further states that she pled guilty to Hobbs Act conspiracy, a federal extortion statute, and is awaiting sentencing.

Department records show that Haydel has held a life and health license since 1987 and a variable annuity license since 1992. Both licenses were immediately suspended by the current action.

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