West Virginian Broker Sentenced for Embezzling Insurance Premiums

September 25, 2009

A Huntington, West Virginia woman has been sentenced to three years and a month in federal prison for embezzling $1.1 million from her company’s clients.

Andrea Mills formerly owned Allied Benefit Administrators Inc., a third-party administrator of employee health-benefit claims.

The 49-year-old Mills admitted embezzling $1.1 million in premiums that her clients paid for reinsurance, payments that were to limit their exposure under the benefit plans they offered.

As a result of her actions, clients lost $2.3 million in health claims that should have been covered by reinsurance but weren’t. U.S. District Judge Robert C. Chambers ordered Mills to pay that amount as restitution.

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