Lawyer Defends Alabama Agent Whose Employees Sold Fake Policies

The lawyer for a Gulf Shores insurance agent has asked state officials to grant her a probation period to allow her to make repayments to customers victimized by fraud.

Richard Lively said that revoking the license of Pamela Wynona Schoen would cut off her ability to earn money and repay victims who thought they had property coverage.

Schoen testified in the close of a two-day hearing that at least 118 fake insurance policies were sold from the Starfish Insurance Agency in 18 months, and she has spent at least $450,000 to repay people who bought bogus coverage. Schoen said the two employees who sold the policies disappeared in September.

Alabama Insurance Department officials asked that a hearing officer revoke Schoen’s insurance sales licenses, at least until she proves she can manage her affairs.