FORMER AGENT SENTENCED FOR THEFT OF PREMIUM MONEY

Maryland Attorney General J. Joseph Curran, Jr., announced today that a 48-year-old former resident of Derwood, Maryland has been sentenced to six months in the Montgomery County Detention Center for stealing money entrusted to her by clients of Montgomery Insurance and Bonding, Inc. for payment of premiums for insurance policies. Karen Lee Hamilton, currently a resident of San Antonio, Texas could have been sentenced to serve 15 years in prison and pay a $25,000 fine. The case followed an investigation by the Insurance Fraud Division of the Maryland Insurance Administration and the Office of the Attorney General.

According to the Statement of Facts given to the Court in support of Hamilton’s guilty plea, between November 2003 and June 2004, Hamilton accepted payments of premium money from ten (10) clients of Montgomery Insurance and Bonding on twenty-five (25) occasions and did not turn the money over to the insurers. The total loss was $9,120.28.00. Hamilton paid restitution to Montgomery Insurance and Bonding prior to charges being filed.

In imposing the sentence, Judge Ann S. Harrington took into consideration Hamilton’s cooperation with her former employer in tracking down the defalcations and the payment of restitution. The Court also noted the insidious nature of the crime, the fact that most clients bilked were Hispanic and Hamilton’s prior record required that punishment be imposed.

“Because of the extensive harm caused by licensed agents who steal from their clients, the Office of the Attorney General will continue to vigorously prosecute those who breach the trust of their clients and the citizens of the State,” Attorney General Curran said.