RALEIGH — Four family-owned insurance agencies facing fraud charges have settled with state regulators and agreed to pay fines and pay back customers who were overcharged, the N.C. Department of Insurance has announced.
http://liarcatchers.com/fraud_investigation.html
The agents accused were Will Honaker and his wife, Tiffany, who own Smithfield Insurance; Heather Richardson, who owns Clayton Insurance; and Holly Cooper, who owns Selma Insurance and Affordable Choice Insurance & Tax Service in Wendell with her husband, Arthur “Brad” Cooper.
Will Honaker, Heather Richardson and Holly Cooper are the children of Bill and Karen Honaker, who own Premium Service of Smithfield, which the four agencies use to finance policies for their customers.
The N.C. DOI began investigating the agencies this summer and found they misquoted and overcharged customers in 77 cases by a total of $131,261.
The agents disputed the claims by submitting signed documents from customers and friends. They also accused DOI auditors of using “the power of suggestion to color the results of each interview (with customers),” a letter to DOI read. But Monday, the agents chose to accept cash fines instead of risk their licenses in an administrative hearing or judicial review.
The Coopers will pay a $100,000 fine. Will Honaker and his wife will pay $50,000. Richardson will also pay a $50,000 fine.
Also, each client who was overcharged will be refunded within 10 days of when they request their refund in writing.
The agents did not return calls for comment.
In a statement provided by their attorney, Leo Daughtry, the agents expressed remorse for their customers while maintaining their innocence.
“They admit that they’ve made mistakes. But they were innocent mistakes, and there was no malice intended,” said Daughtry, a longtime Republican state representative from Smithfield.
Those who were overcharged range from individuals and government agencies to churches and trucking companies, the audits show. Overpayments range from $50 to $15,000.
Brad Cooper’s firing of two employees during the course of the DOI audit also drew scrutiny from state regulators. The firings, however, were not listed by DOI as part of the cause for the penalties.
