Former Delaware insurance agent gets 3-year prison term

Former Delaware insurance agent Zenaida Nieves-Cordero was sentenced to three years in prison after pleading guilty to three counts of felony theft involving client funds. restitution.

The office of the state Insurance Commissioner announced the sentence.

The insurance department launched an investigation after receiving consumer complaints over unexplained withdrawals. During an inquiry into Nieves-Cordero's business practices at her former agency, Apple Insurance Inc., state insurance investigators uncovered a pattern of unauthorized withdrawals from clients' bank accounts, the department reported.

Consumers had allowed Nieves-Cordero to withdraw funds solely to pay insurance premiums; however, evidence showed she diverted hundreds of thousands of dollars for her personal use over several years.

The majority of Nieves-Cordero's clients were Spanish-speaking residents of Kent and Sussex counties who worried about reporting the issue to authorities. The department commended those who came forward and allowed the state Department of Justice to investigate and prosecute the case.

The immigrant community in the two counties has seen heightened enforcement, Trump Administration immigration status changes, and aggressive tactics from Homeland Security's ICE agents. Enforcement appears to have been less aggressive in Delaware than in other states. Still, concerns remain that crimes, including fraud, have not been reported to law enforcement.

In addition to referring the matter for criminal prosecution, the Insurance Department was granted a Chancery Court conservatorship over Apple Insurance Inc. and Nieves-Cordero's insurance business operations to ensure an orderly wind-down. After the conservatorship was approved, investigators found that Nieves-Cordero had already depleted Apple Insurance Inc.'s known bank account and continued accessing funds through undisclosed accounts.

Insurance Commissioner and former New Castle County Police officer Trinidad Navarro said he had not encountered a case of similar size.

Nieves-Cordero received additional levels of probation following a prison release. She was ordered to have no contact with her victims and must pay $625,226.75 in restitution.

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