Department of Commerce and Regulation
For Immediate Release: Tuesday, July 23, 2002
For More Information: David Siebrasse, 773-6325 

Insurance Agent Sentenced to Six Years for Forgery and Misappropriation

(Pierre) -- The South Dakota Insurance Fraud Prevention Unit announced today that former insurance agent Curtis Wagner of Chamberlain pleaded guilty to and was sentenced on one count of Forgery and two counts of Grand Theft by Misappropriation of Insurance Premium Trust Funds on July 19, 2002. 

The Forgery charge stems from a scheme whereby Wagner would sign client signatures onto various insurance forms without the client’s knowledge or permission. These forms were later forwarded to the insurance company with the false signatures. These forms included a Medicare Supplement application, Medicare Supplement Change form, and various other summary and disclosure forms. 

The Grand Theft charges stem from Wagner’s scheme whereby he would receive annual premium payments from individuals for a long-term care supplement policy. However, Wagner failed to forward these premium monies onto the insurance companies and failed to secure the insurance coverage that the clients were requesting. Instead, Wagner used the premium monies for his own business and personal activities. Additionally, Wagner would falsify the policy and declaration sheet and pass these false insurance documents onto the client thereby giving the client the impression that they had valid long-term care insurance coverage.

Circuit Judge Lori S. Wilbur sentenced Wagner to serve 6 years in the South Dakota State Penitentiary for these acts. An additional 19 years were suspended on the condition that Wagner make seventeen thousand, two hundred eighty dollars and ninety-six cents ($17,280.96) in restitution and pay court costs of fifty-three dollars ($53.00). Circuit Judge Wilbur advised the defendant that he would be parole eligible after serving approximately forty-percent (40%) of his six-year sentence. 

"I am extremely pleased with the sentence. It is an appropriate punishment for Mr. Wagner and should also put the insurance industry on notice that forging clients signatures and embezzling premiums will not be tolerated in this state," said David W. Siebrasse, Assistant Attorney General and Unit Chief of the Insurance Fraud Prevention Unit. "The Insurance Fraud Unit is committed to wiping out these practices in South Dakota through vigorous investigation and prosecution of any agent who is found to be forging clients signatures or embezzling insurance premiums."

The Fraud Unit was created by the 1999 legislature to combat insurance fraud in South Dakota through the investigation and prosecution of fraudulent insurance acts. The Fraud Unit also strives to increase public awareness of insurance fraud through educational presentations to the general public and the insurance industry.

If a person suspects insurance fraud has been committed or would like to schedule an insurance fraud presentation, the Insurance Fraud Prevention Unit can be contacted at (605) 773-6325, or by writing to 118 West Capitol Ave, Pierre South Dakota 57501. Or information can also be obtained at the units web site at www.state.sd.us/insurance.

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